JBS USA to Take $400m Facility

JBS USA will take a $400m 2018 term loan B facility, according to Fitch. The term loan is in addition to plans for the US subsidiary of the Brazilian beef producer to issue $1bn in 2019 NC3 and 2021 NC4 bonds. The loan is rated BB by the ratings agency, because of the company’s strong business profile as the world’s largest beef and pork producer and as the second biggest chicken producer. However, the ratings agency adds that the company’s risk profile is above average because of cyclical risks associated with the meat business and the company’s aggressive growth through acquisitions. Though the credit profile of the company is expected to benefit from the integration of recent acquisitions, its margins will be pressured by high cattle and grain prices, adds the ratings agency.