Brazil's BRF starts cash tender offer for 6 7/8% notes and 7¼% notes

By Jennifer Chiou

New York, May 7 - BRF SA announced the start of cash tender offers for the $220,718,000 of outstanding 6 7/8% notes due 2017 issued by subsidiary Sadia Overseas Ltd. and the $629,282,000 of outstanding 7¼% senior notes due 2020 issued by subsidiary BFF International Ltd.

The companies will determine the tender consideration using the 0.875% Treasury due April 15, 2017 plus a fixed spread of 150 basis points for the 6 7/8% notes and the 1.625% Treasury due April 30, 2019 plus 195 bps for the 7¼% notes.

Assuming a hypothetical pricing date of May 6 and a settlement date of May 22, for each $1,000 principal amount, holders would receive $1,129.54 for the 6 7/8% notes and $1,184.44 for the 7¼% notes.

The companies will also pay accrued interest to the settlement date.

The offers will end at 8 p.m. ET on May 15, and pricing will be measured at 2 p.m. ET on May 14.

D.F. King & Co., Inc. (800 967-4604 or 212 269-5550) is the information and tender agent.

The dealer managers are BB Securities Ltd. (44 20 7367 5803), Banco BTG Pactual SA-Cayman Branch (212 293-4600), Itau BBA USA Securities, Inc. (888 770-4828), Morgan Stanley & Co. LLC (212 761-1057 or 800 624-1808) and Santander Investment Securities Inc. (212 407-7822).

BRF is a food company based in Itajai, Brazil.

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