BRF starts loan renegotiations

BRF starts loan renegotiations

Loans Corporate & Sovereign Strategy Debt Brazil

Brazil's BRF has opened talks with banks to renegotiate BRL2.68bn ($718m) in loans by the end of June this year, a company source told LatinFinance.

"We have started negotiating with the banks and hope to conclude as soon as possible," the source said.

BRF has wrapped up talks with Santander, but it is still in negotiations with the local lenders Banco do Brasil, Bradesco and Itaú Unibanco, the source said.

"We have BRL1.28bn to negotiate in the first quarter and another BRL1.4bn in the second. All of our [bank] debt has a 3.5-year maturity," he said.

The meatpacker could also renegotiate in the coming months $2.6bn in bonds that mature in 2020, he added.

BRF has earned $4.1bn from an asset sales program, or 81% of the BRL5bn target. BRF's share prices dropped almost 4% on Thursday after the divestment plan fell short, but they recovered 1.25% on Friday to end the week at BRL23.50.