BRAZIL – JBS S.A. and its subsidiary, JBS USA Food Company, are launching registered exchange offers for a range of outstanding senior notes, with the total principal amount exceeding US$1.5 billion.
This initiative is aimed at improving the company’s financial flexibility while aligning with its corporate sustainability objectives.
The exchange offers encompass various maturity dates, extending up to 2053.
Among the offerings are 6.750% Senior Notes due in 2034, which JBS is exchanging for an equal amount of outstanding notes with the same interest rate.
This exchange includes multiple series of senior notes featuring different interest rates and maturities, including registered sustainability-linked notes.
These sustainability-linked instruments, which come with rates of 3.000% and 3.625% due in 2032, reflect JBS’s commitment to advancing environmentally responsible growth in global protein production.
Additionally, JBS is offering 7.250% Senior Notes maturing in 2053, exchanging $900 million in principal for equivalent amounts of existing notes. This strategy is designed to enhance the company’s liquidity by refreshing its debt structure through registered, tradable securities.
Commitment to Sustainability and Market Adaptability
As JBS continues its expansion in North America and other regions, this strategy serves as both a means to strengthen financial resilience and a demonstration of the company’s adherence to environmental standards.
The sustainability-linked notes connect interest rates with JBS’s environmental goals, promoting the company’s dedication to sustainable practices within its meat and food processing operations.
These notes allow for greater adaptability to market changes while catering to investors with a focus on environmental, social, and governance (ESG) criteria.
The exchange offer features several key components, including new notes that range from 2.500% Senior Notes due in 2027 to 7.250% Senior Notes due in 2053, covering approximately US$1.5 billion in total.
Each offer represents an equal principal amount exchanged between existing and newly issued notes, retaining consistent interest rates and maturity dates.
With interest rates spanning from 2.500% to 7.250%, JBS’s strategy reflects a tailored approach to meet diverse investor expectations and adapt to prevailing market conditions.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE