Marfrig Aims for Mid-10%

Brazil’s Marfrig is targeting a yield of mid 10% for a new 2017 bond, according to investors following the sale. The B2/B+/B+ rated meatpacker is due to complete investor meetings today in New York, with pricing to follow. The meatpacker is looking to raise $300m, according to Moody’s. Proceeds are to be used to improve the company’s capital structure by lengthening its debt profile. Bank of America Merrill Lynch, Bradesco, Banco do Brasil and Itau are managing the transaction, to be done through the Marfrig Holdings Europe unit. Marfrig Alimentos and certain subsidiaries are guarantors. BAML took Marfrig on a non-deal tour in November. Marfrig’s last bond sale was in May 2011, when it raised a $750m 2018 bond to yield 8.6%. The 2016, 2018 and 2020 bonds were yielding around 9%, 10.5% and 11%, respectively, Monday.