JBS USA, the U.S division of Brazil’s JBS, is seeking to raise $1.4 billion through the sale of overseas bonds, The Wall Street Journal reports. The $400 million senior secured term loan is scheduled to mature in 2018, while the $1 billion senior unsecured notes will mature in 2019 and 2021.
The company intends to use the proceeds from both debt issuances primarily to pay off existing, higher cost, short-term debt at the parent level and to extend JBS’ maturity profile. JBS’ board has provided approval for its management to raise funds through one or more debt arrangements at either of its indirect subsidiaries, JBS USA or JBS Australia, in an amount up to $2.5 billion.
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