Brazil's Marfrig wraps tender offer for 11¼% notes and 9 7/8% notes

By Susanna Moon

Chicago, April 23 - Marfrig Global Foods SA announced the final tender results for Marfrig Holdings (Europe) BV's tender offer for up to $100 million principal amount of its $400 million 11¼% senior notes due 2021.

The company also is tendering for an amount of its $600 million 9 7/8% senior notes due 2017 equal to $130 million less the total amount of 11¼% notes purchased.

The total purchase amount was bumped up from the original $125 million amount on April 8.

The tender offer ended at 11:59 p.m. ET on April 22, with settlement set for April 24.

Investors tendered $57,135,000 principal amount, or 14.28%, of the 11¼% notes and $166.04 million principal amount, or 27.67%, of the 9 7/8% notes, according to a company press release.

That compares with tenders for $57,135,000 principal amount of the 11¼% notes and $165.59 million principal amount, or 27.60%, of the 9 7/8% notes as of 5 p.m. ET on April 7, the early tender date.

All of the tendered 11¼% notes and $72,865,000 principal amount of 9 7/8% notes were accepted for purchase.

The total purchase price for each $1,000 principal amount of notes tendered by the early tender deadline is $1,075 for the 11¼% notes and $1,050 for the 9 7/8% notes. The total amount for each series includes an early tender payment of $35 for each $1,000 principal amount.

Those who tendered after the early tender deadline will receive the total payment less the early tender premium.

The company also will pay accrued interest up to but excluding the settlement date.

The principal purpose of the tender offers was to reduce interest expense by retiring a portion of the outstanding debt using cash on hand, the company previously said.

The dealer managers were Banco Bradesco BBI SA (attn: fixed income division, collect 212 888-9145), BTG Pactual US Capital (collect 212 293-4600), Deutsche Bank Securities Inc. (attn: liability management, collect 212 250-6429) and Morgan Stanley & Co. LLC (attn: liability management, 800 624-1808 or collect 212 761-1057). The information agent and tender agent was D.F. King & Co., Inc. (212 269-5550 or 800 967-4604).

Marfrig is a food processing company based in Sao Paulo, Brazil.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.