Minerva Readies Follow-on

Brazilian beef producer Minerva is preparing to raise about $230m through an equity follow-on. It plans to offer 43m shares, assuming a 15% greenshoe, it says, in a sale that would raise BRL473m ($234m) at Monday’s BRL10.99 closing price. The sale is to include primary shares, as well as secondary shares to be sold by VDQ holdings. The meatpacker plans to begin meeting investors November 19 ahead of a November 29 expected pricing date. About 65% of the proceeds will be used for debt, and the remainder for acquisitions in the beef space in South America. BTG Pactual, Credit Suisse, HSBC and Morgan Stanley are managing the sale. “With Minerva currently sitting on a cash pile equivalent to all debt amortizations coming due by 2017, the equity offering should make Minerva’s liquidity situation/amortization profile even more comfortable,” Barclays says.