Investors seen piling into JBS retap
April 24, 2019 |
Brazilian meat company takes advantage of market momentum to add $700m to three series of bonds
JBS is likely to find buoyant investor demand as it adds $700m to three series of bonds, with $250m each for its 5.875% 2024 and 5.75% 2025 notes and $200m for its 6.5% 2029s, LatinFinance has heard.
"This is probably going to do very well," said a debt capital markets banker in São Paulo. "The company's share price has rallied recently and is probably going to do so more because of the swine fever crisis. They are taking advantage of this strong momentum," he added.
JBS' shares on the B3 stock exchange in São Paulo have climbed almost 40% so far this year, closing at BRL19.72 ($5.03) on Tuesday, as an outbreak of swine fever in China has fed expectations of rising meat exports from Brazil.
Barclays, which led JBS in a $500m retap in early April, is the managing the new add-on, while Bradesco is also working on the deal, the banker said.
JBS said its US business is looking to sign a new $1.9bn loan after the retap to pay off a loan that expires in 2022.
JBS had BRL47.2bn in net debt and BRL16.4bn in available credit lines at the end of last year, according to its latest financial results.