Minerva Set for Convert Pricing

Brazilian meatpacker Minerva is expected to announce today the price for the sale of BRL300m ($190m) in 2015 convertible debentures following the closing of bookbuilding Tuesday. The company is looking at a reoffer price of between 97.00-103.00 of face value, with the interest rate and conversion price range already established. In what is being called the Brazilian market’s first-ever public sale of mandatorily convertible debentures, Minerva will pay interest at 100% of DI, with the minimum and maximum conversion prices set at BRL6.00 and BRL8.00, respectively. The issuer elected to price the bonds at the premium or discounts, as regulators only wanted investors bidding on one value during the sales process. The company’s shares closed at BRL5.69 Monday. Proceeds are marked for the repayment of 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, Minerva plans to launch a tender for some BRL150m notional value in stock warrants issued as part of a 2009 capital raise.