Moody's assigns FS, notes B1

Moody's Investors Service said it assigned a (P)B1 ratings to FS Agrisolutions Industria de Biocombustiveis and its proposed $500 million of senior secured notes to be issued by FS Luxembourg Sarl. FS Agrisolutions will guarantee the notes.

“FS Agrisolutions Indústria de Biocombustíveis (FS)'s (P)B1 rating incorporates its scale among the six largest ethanol producers in Brazil, being the largest on corn feedstock. FS is a low-cost producer with favorable access to corn feedstock and located in a region with a high demand for animal nutrition, co-product from the ethanol production process,” the agency said in a press release.

The proceeds will be used to refinance debt and investments focusing on bioenergy, to increase corn-based ethanol production and operational investments to acquire feedstock to produce corn-based ethanol, and on forestry, to plant forest, acquire standing forest or operational investments to support small producers of timber derived feedstocks via forward contracts to acquire biomass and funding for their initial capital investments.

The notes will be secured on a first-priority basis by collateral, including the real estate property and equipment of Lucas do Rio Verde and Sorriso units.

The outlook is stable.

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