Brazilian meatpacker Minerva tapped the international bond market for the first time in more than two years on Wednesday, raising $900 million to fund the acquisition of assets from local rival Marfrig, a source involved in the deal told LatinFinance.
Minerva priced the non-callable five-year 2033 notes at par to yield 8.875% after opening the deal around 9%, the source said.
“I think it’s a good deal for the company and their equity holders,” said a London-based investor who acquired some of the bonds.
“I will clip the coupon a few months and wait on the sidelines in case the synergies don’t materialize or the favorable moment in the South American beef cycle turns sour,” the investor added.
Investors placed as much as $1.25 billion in orders, according to a source familiar with the deal.
JPMorgan led the Rule 144A/Reg S bond sale, along with Itaú BBA, Bank of America, Bradesco, HSBC, Morgan Stanley, Rabobank, Banco do Brasil, Mizuho, MUFG and XP as joint bookrunners, according to the sources.
Minerva plans to use the proceeds to help finance the Marfrig transaction. If the company fails to close the deal by February 2025, it will use the funds to pay down some of its outstanding debt and that of its subsidiaries, according to the second source.
S&P Global Ratings assigned the bonds a BB rating on its international scale.
The company last sold global bonds in July 2021, when it added $400 million to its 4.375% 2031 notes.