Minerva Talks Price

Brazil’s Minerva is out with mid-to-high 8% initial price talk for what is expected to be a $500m 2023 bond sale, according to people familiar with the process. The transaction could grow in size depending on interest in a cash tender offer the meatpacker plans to fund with the proceeds. Minerva is wrapping up fixed-income investor meetings today, and could price as soon as Thursday. Leads are using Minerva’s 2022 bonds, quoted at 8.15%-8.20% yield, as the most immediate comp. In the tender, the issuer is looking to replace its 9.500% 2017, 10.875% 2019 and 12.250% 2022 bonds. Minerva is offering holders $1,105 per $1,000 principal of the 2017s, $1,200 per $1,000 of the 2019 and $1,262 per $1,000 of the 2022s. The prices include a $30 per $1,000 bonus for holders accepting before a January 25 early deadline. The full tender offer expires February 8. There is $34m outstanding in the 2017 bond, $372m of the 2019 and $450m of the 2022. BTG Pactual, HSBC and Credit Suisse are managing the tender and new issue.