Marfrig hints at more buybacks
May 20, 2019 |
Brazilian food company says it will decide on the next step after it wraps up the repurchase of its 2021 and 2023 notes
Brazil's Marfrig said it could buy back more bonds this year as it tries to lower financing costs and extend debt maturities.
"There are other tender offers still to open," CFO Marco Spada said during a conference call to discuss Marfrig's first quarter results. "After the conclusion of [the buyback], we are going to see what bids we are going to liquidate," he said.
The São Paulo-based food processing company opened an offer late last month to buy back its 11.25% 2021 notes and 8% 2023 notes through May 23. Marfrig sold $1bn in seven-year notes earlier this month to pay for the buyback.
The early deadline for the buyback passed on May 9, with bondholders tendering $5.59m in 2021s, or 20.4% of the total, and $554m in 2023s, or 55.4% of the total. Marfrig had $27.8m in outstanding 2021 notes and $1bn in outstanding 2023 notes when it announced the buyback.
Spada added that Marfrig could call the $508m in outstanding 6.875% bonds due in June this year. "I am not going to state it at this moment, but it is a possibility," Spada said.
Marfrig raised $850m from the sale of the five-year notes in 2014, but it repurchased $152m, or 25%, of the 2019s in January last year. The company also has $750m in 7% 2024 notes that it sold in March 2017 and $1bn in 6.875% 2025 notes that it sold in January 2018.