JBS USA prices tender offer for $1 billion senior notes due 2027

Published 27/06/2025, 21:34
JBS USA prices tender offer for $1 billion senior notes due 2027

GREELEY, Colo. - JBS USA Food Company, maintaining a strong financial position with $77.4 billion in revenue over the last twelve months, announced today the pricing terms for its tender offer to purchase any and all of its outstanding $1 billion 2.500% Senior Notes due 2027. According to InvestingPro data, the company demonstrates robust financial health with a "GREAT" overall score, supported by liquid assets exceeding short-term obligations.

According to the company’s statement, the tender offer consideration is $980.21 per $1,000 principal amount of notes validly tendered and not withdrawn before the expiration time. Holders whose notes are purchased will also receive accrued and unpaid interest from the last interest payment date up to, but excluding, the settlement date. The company’s strong free cash flow yield of 16% and current ratio of 1.62 indicate its solid capacity to manage such financial obligations.

The tender offer will expire at 5:00 p.m., New York City time, on July 27, 2025, unless extended or terminated earlier. Settlement for all notes tendered prior to the expiration time is expected to be July 3, 2025.

Tendered notes may be withdrawn at any time before the expiration time. The tender offer is subject to certain conditions, including a financing condition as defined in the offer to purchase documents.

BMO Capital Markets Corp., Banco BTG Pactual S.A. - Cayman Branch, Citigroup Global Markets Inc., Mizuho Securities USA LLC, and RBC Capital Markets, LLC are acting as dealer managers for the tender offer. D.F. King & Co., Inc. is serving as the tender and information agent.

The tender offer consideration was determined by reference to a fixed spread of 0 basis points plus the yield based on the bid-side price of the 4.00% U.S. Treasury Security due January 15, 2027, as quoted on the Bloomberg Bond Trader FIT4 series at 2:00 p.m., New York City time, on June 27, 2025.

The company stated that the offer is being made solely on the terms and conditions set forth in the offer documents dated June 23, 2025. For investors seeking deeper insights into JBS USA’s financial position and future prospects, InvestingPro offers comprehensive analysis through its Pro Research Report, available as part of its coverage of 1,400+ top stocks, providing essential metrics and expert analysis for informed investment decisions.

In other recent news, JBS S.A. has reported its fourth-quarter earnings, revealing an EBITDA of R$10.8 billion, which exceeded both BMO Capital Markets’ estimate of R$10.5 billion and the consensus forecast of R$9.85 billion. This financial performance has led BMO Capital to raise its price target for JBS from R$48.00 to R$52.00, while maintaining an Outperform rating. The firm cited strong momentum in JBS’s Seara and PPC divisions as contributing factors. Stephens has also initiated coverage on JBS with an Overweight rating and a price target of $22.00, noting the company’s diverse earnings stream and potential U.S. stock market listing as significant opportunities.

Additionally, JBS B.V. and JBS S.A. have both filed Form 6-K with the U.S. Securities and Exchange Commission for May 2025, as part of their routine compliance with U.S. financial regulations. These filings ensure transparency and adherence to international corporate governance standards. The documents included material facts and summaries of resolutions from recent meetings. JBS B.V. operates out of Amstelveen, Netherlands, while JBS S.A. is headquartered in São Paulo, Brazil.

Both companies have authorized Guilherme Perboyre Cavalcanti, their Chief Financial Officer, to sign the reports, underscoring their commitment to regulatory compliance. These developments reflect JBS’s ongoing efforts to maintain transparency with investors and regulatory bodies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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