Minerva, Launches Converts, Plans Warrant Tender

Brazilian meatpacker Minerva plans to sell its BRL300m ($190m) 2015 convertible debentures at between 97.00 and 103.00 of face value on July 26 and will tender for outstanding stock warrants thereafter. The deal is being called the Brazilian market’s first-ever public sale of mandatorily-convertible debentures, The issuer elected to price the bonds at the premium or discount, as regulators only wanted investors bidding on one value during the sale process, according to a company official. The issuer had originally planned to negotiate the interest rate, now set at 100% of DI, as well as the minimum and maximum conversion prices, now set at BRL6.00 and BRL8.00, respectively. Shares closed at BRL5.24 Wednesday. Proceeds from the sale are marked for repaying existing debt, and for working capital. Minerva is rated BBB minus on a national scale. Goldman Sachs, Deutsche Bank and Banco do Brasil are leads. Separately, following the convertible bond sale Minerva says it plans to launch a tender for some BRL150m notional value in stock warrants issued as part of a 2009 capital raise.