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JBS Sells $2 Billion in Debentures

by 5m Editor
24 December 2009, at 9:36am

BRAZIL - Brazilian meat processing giant JBS is to sell $2 billion worth of convertible debentures as part of its bid to take its US subsidiary JBS Swift public.

The debentures are being sold to the Brazilian National Development Bank's investment branch BNDESPAR and to other shareholders.

The company said that because the debentures are convertible they can be exchanged for shares in JBS Swift in the US which it wants to see as a public company next year.

A company statement said: "The funds will be fully used to subscribe a capital increase in JBS USA, with the objective of (a) complete the operation reflected in the Stock Purchase Agreement by which the JBS USA, by subscription of new shares, become entitled to be shares representing 64 per cent of the total voting capital of Pilgrim's Pride Corporation, and (b) strengthen the capital structure consolidated by the Company for implementation of investment plans and expansion projects, as well as providing completion of the integration of operations with Bertin SA."