Pilgrim’s Pride, from JBS, costs $900 million in first banknote – 08/19/2021

(Reuters) – JBS’s US subsidiary Pilgrim’s Pride said Thursday it has priced an offer of $900 million in unsecured bonds maturing in 2032.

According to the statement, the bonds will be issued at 100% of the total principal amount and will have a yield of 3.5%. Due to demand, the issue amount was increased from the initial plan of $750 million. The banknote sale is expected to close on September 2.

The company plans to use the proceeds to fund the purchase of the ready-to-eat and takeaway business of Kerry Consumer Foods in the United Kingdom and Ireland. The rest will be used to pay off loans and general corporate purposes.

The move comes after JBS announced that it intends to write off Pilgrim’s Pride. The Brazilian company, which already owns 80.21% of the shares issued by PPC, agreed last week to send a letter of offer to the US company to acquire all outstanding shares for $26.50 per share.

This already had an impact on Thursday’s release, with PPC stating that “S&P Global has announced that, due to JBS’ recent announcement…, it now sees the company as a central subsidiary of JBS.”