Flash Fixed Income Report /
Brazil

Brazil: BRF details tender offer

    Rafael Elias
    Rafael Elias

    Director, Latin America Credit

    Tellimer Research
    11 September 2019
    Published by

    BRF S.A. (BRFSBZ) announced today the commencement of an offer to purchase for cash: 

    1. (a) 5.875% senior notes due 2022 (“2022 notes”); (b) 2.750% senior notes due 2022 (“euro notes”), and (c) 3.95% senior notes due 2023 (“2023 notes”);
    2. 4.755% senior notes due 2024 up to the maximum amount of US$1,010.

    The table below summarises certain terms and conditions of the offers:

    Title of SecurityPrincipal Amount OutstandingMaximum AmountTender ConsiderationEarly Tender PremiumTotal Consideration

    5.875% senior notes due 2022

    US$118,662,000

    Any and all

    N/A

    N/A

    U.S.$1,038.75

    2.750% senior notes due 2022

    EUR500,000,000

    Any and all

    N/A

    N/A

    €1,048.75

    3.95% senior notes due 2023

    US$500,000,000

    Any and all

    N/A

    N/A

    U.S.$1,011.25

    4.75% senior notes due 2024

    US$750,000,000

    Maximum amount

    US$1,010

    US$30

    U.S.$1,040.00

    Source: BRF

    In the case of the 4.75% notes due 2024, the maximum amount to be tendered equals an aggregate amount of 2024 notes, total consideration not to exceed US$410.0mn less than the cash amount in USD, that BRF is required to spend to purchase the 2022 notes, the euro notes and the 2023 notes validly tendered and accepted for purchase. 

    The offers to purchase 2022 notes, euro notes and 2023 notes will expire on September 18; the offer to purchase 2024 notes will expire on October 8 (unless earlier terminated or extended by BRF).  

    We have a Hold recommendation on the BRF family of bonds.