Marfrig offers to buy back up to $467.5M in debt

Marfrig Global Foods launched a tender offer to buy back up to $467.5 million in debt securities maturing in 2029 issued by its subsidiary NBM US Holdings. The meatpacker disclosed the move on Monday, September 28, in a filing with the Brazilian securities regulator CVM.

The cash offer targets all outstanding senior notes held by international investors. Marfrig will pay $1,002.50 for each $1,000 of principal amount delivered and accepted, plus accrued interest through the settlement date.

Investors have until October 2 at 5:00 p.m. New York time to accept the offer or withdraw their notes. Settlement for the accepted debt is scheduled for October 6.

The transaction depends on the satisfactory completion of one or more new senior note issuances abroad by Marfrig subsidiaries. Those new bonds will be guaranteed by Marfrig, NBM, BRF, and other group subsidiaries in an offering exempt from US registration. The tender offer does not require a minimum acceptance volume, but Marfrig noted there is no guarantee the new bond sale will be finalized.