Marfrig Global Foods announces pricing of its first senior notes offering in British pounds, amounting to £200M with a seven-year maturity, fixed interest rate of 6.25%

SAO PAULO , May 23, 2014 (press release) – For compliance with the requirements of Brazilian Securities Commission (CVM) Ruling No. 358 dated January 3, 2002, MARFRIG GLOBAL FOODS S.A. (the “Company” or “Marfrig”) announces to shareholders and the market that, through its wholly-owned subsidiary Moy Park (Bondco) Plc (the “Issuer”), successfully priced today in the European market
its first Senior Notes issuance (the “Notes”) in Sterling Pounds, amounting GBP 200 million, with a 7 year maturity (7NC3) and at a fixed interest rate of 6,25% per year.

The offering allowed the Company to raise LT funding from the Debt Public Markets at its lowest cost ever, enhancing its capital structure, reducing financing costs and continuing delivering over the “FOCUS TO WIN” plan announced to the market in October 2013.

The quality of the order book was strong, coming from institutional investors in the UK, France, the Netherlands and several other European countries.

Moody’s assigned a B1 rating to the Notes, while Standard & Poor’s assigned a B rating with positive outlook.

S&P also gave a BB- rating to Moy Park on a standalone basis, two notches higher than the Company’s.

The Notes are guaranteed by Moy Park Holdings Europe Ltd., Moy Park Ltd. and certain affiliates, without having Marfrig as a guarantor.

The proceeds going to the Company will be used to repay existing financial indebtedness.

The Notes have not been, nor will be registered with the Brazilian Securities Commission (“CVM”) or the U.S. Securities and Exchange Commission (“SEC”) under the U.S. Securities Act of 1933, as amended. Accordingly, the Notes were offered and sold only to qualified institutional buyers (“QIBs”) in reliance on the exemption from registration provided by Rule 144A under the U.S. Securities Act.

This notice should not be construed as an offer to sell or solicitation of an offer to purchase the Notes, or an offer, solicitation or sale of Notes in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. 

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