JBS seeks consents to amend 9 3/8%, 10½% notes

By Laura Lutz

Des Moines, June 11 - JBS SA launched a consent solicitation for all of its 9 3/8% senior notes due 2011 and 10½% senior notes due 2016, according to a news release.

There is $275 million principal amount of the 9 3/8% notes and $300 million 10½% notes outstanding.

The consent solicitation will expire at 5 p.m. ET on June 26.

Among other changes, the proposed amendments to the note indentures would allow JBS to designate one or more of its newly formed or acquired subsidiaries as "unrestricted." Unrestricted subsidiaries would not be subject to the covenants in the indentures that otherwise apply to JBS and its subsidiaries.

The company said in the release that the proposed changes would provide it with flexibility to obtain financing that is non-recourse to JBS and its subsidiaries in order to facilitate its acquisition of Swift Foods.

Holders who deliver consents by the expiration date will receive $2.50 per $1,000 principal amount of notes.

If the consent solicitation is completed successfully and JBS chooses to make the supplemental indentures operative, consenting noteholders will receive an additional $7.50 per $1,000 principal amount of notes.

Sao Paulo, Brazil-based JBS, also known as Grupo Friboi, is the fourth-largest beef company in the world in terms of live cattle slaughtering capacity and the largest beef processor and exporter in Brazil and Latin America as measured by revenues.

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