Brazilian corporate with the best capital markets strategy

Jul 1, 2014

Taking refinancing chances when they arise has kept debt costs under control amid hefty acquisitions

When JBS agreed to buy the Seara poultry and pork unit in Brazil from Marfrig in June 2013, it took on a huge debt pile. A month earlier, it had agreed to buy a similar operation for 200 million reais ($90 million) from Brasil Foods.

Seara saw JBS assuming 5.85 billion reais ($2.73 billion) of debt.

Yet the company has since done a number of transactions to get its debt under control. That includes two new bond sales, a reopening and a tender offer.

JBS and its competitors - including Marfrig and Brasil Foods - have all made efforts to take advantage of low yields on offer in the bonds markets, to refinance debt. But it is JBS's persistence in the bond markets and its aggressive leverage reduction that has earned it this award for the year...

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