Paraguayan meatpacker Frigorífico Concepción has reportedly called off a proposed $300 million bond sale in the international market after talking pricing with investors on Monday, according to information from Refinitiv on Tuesday.
The meatpacker set the initial price talk on a planned sale of seven-year, non-call three US dollar-denominated notes in the high-12% area on Monday, Refinitiv reported.
Frigorífico Concepción began calling investors on February 5 to pitch the notes, with Bank of America and JPMorgan acting as the joint bookrunners, according to a source involved in the deal.
The company was looking to use the funds to add to working capital and for covering general corporate purposes, the source added.
Fitch Ratings and S&P Global Ratings had assigned the notes international B+ and B ratings, respectively, while Moody’s Investors Service gave it a Ba1 grade, adding that Frigorífico Concepción was planing to use the proceeds for funding investments, refinance debts and bolster its cash balance.
The company was planning to “use about $150 million for working capital and about $50 million for capital expenditures,” S&P said in a report.
Frigorífico Concepción CFO Jorge Usandivaras told LatinFinance in July last year that the firm was waiting for favorable market conditions and expected to sell bonds this year or in 2025, either by issuing $500 million in new 10-year notes or tapping its 7.7% 2028 notes.
The meatpacker sold $300 million worth of 7.7% 2028 bonds in July 2021.