JBS USA Lux S.A. Announces Offering of Senior Notes and Intention to Refinance its Senior Secured Term Loans

GREELEY, Colo., April 23, 2019 (GLOBE NEWSWIRE) -- JBS USA Lux S.A. (“JBS USA”) announced today that it is offering, subject to market conditions, US$700.0 million in aggregate principal amount of senior notes (the “Notes”).  The Notes will be allocated among (i) additional 5.875% senior notes due 2024 in an aggregate principal amount of US$250.0 million (the “Additional 2024 Notes”), (ii) additional 5.750% senior notes due 2025 in an aggregate principal amount of US$250.0 million (the “Additional 2025 Notes”) and (iii) additional 6.500% senior notes due 2029 in an aggregate principal amount of US$200.0 million (the “Additional 2029 Notes”). 

The Additional 2024 Notes are being offered as additional notes under an existing indenture pursuant to which JBS USA previously issued US$750.0 million in aggregate principal amount of 5.875% senior notes due 2024.  The Additional 2025 Notes are being offered as additional notes under an existing indenture pursuant to which JBS USA previously issued US$900.0 million in aggregate principal amount of 5.750% senior notes due 2025.  The Additional 2029 Notes are being offered as additional notes under an existing indenture pursuant to which JBS USA previously issued US$1.0 billion in aggregate principal amount of 6.500% senior notes due 2029.  

In addition, JBS USA announced the commencement of marketing a new senior secured term loan in an aggregate principal amount of US$1.9 billion (the “New Term Loan”).  The entering into the New Term Loan will be subject to the closing of the offering of the Notes and market conditions.  

JBS USA intends to use the net proceeds from the offering of the Notes and the New Term Loan, along with cash on hand, to repay all amounts outstanding under its existing term loan. 

This press release is neither an offer to purchase nor a solicitation of an offer to sell or buy the Notes.  There shall not be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

The Notes will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and may not be offered or sold in the United States or to any U.S. persons absent registration under the Securities Act, or pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.  The Notes will be offered only to “qualified institutional buyers” under Rule 144A of the Securities Act or, outside the United States, to persons other than “U.S. persons” in compliance with Regulation S under the Securities Act.

Important Notice Regarding Forward-Looking Statements

This press release contains certain forward-looking statements.  Statements that are not historical facts, including statements about our perspectives and expectations, are forward looking statements.  The words “expect,” “believe,” “estimate,” “intend,” “plan” and similar expressions, when related to JBS USA and its subsidiaries, indicate forward-looking statements.  These statements reflect the current view of management and are subject to various risks and uncertainties.  These statements are based on various assumptions and factors, including general economic, market, industry and operational factors.  Any changes to these assumptions or factors may lead to practical results different from current expectations.  Forward-looking statements relate only to the date they were made and JBS USA undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made.

About JBS USA

JBS USA is a leading processor of beef and pork in the United States, the number one processor of beef in Australia in terms of daily slaughtering capacity, and the number two processor of chicken in the U.S. and U.K. through its subsidiary, Pilgrim’s Pride Corporation.  JBS USA processes, prepares, packages and delivers fresh, processed and value-added beef, pork, chicken, and lamb products for sale to customers in the United States and international markets. In addition to the U.S. and Australia, JBS USA has processing facilities in Canada (beef), Europe (chicken) and Mexico (chicken). JBS USA is an indirect wholly owned subsidiary of JBS S.A., the world’s largest animal protein producer.