Corporate Debt Restructuring Masterclass

18 July 2022 (Mon), 5pm Singapore/HK time

Brazilian meat company Marfrig announced that it has agreed to buyback $1.04bn worth of its outstanding 7% bonds due 2024 and 6.875% bonds due 2025 after investors tendered by the early deadline of January 25. It raised $1.5bn worth of 3.95% bonds due 2031 on January 14 to finance the buyback, which was announced on January 11. Prior to the buyback, Marfrig had $1bn and $750mn in amount outstanding for the 2024s and 2025s respectively.
Bondholders offered $324mn of the 2024s, 43.2% of the outstanding bonds, and $714mn of the 2025s, 71.4% of the outstanding. The São Paulo based company agreed to pay $1,025 for every $1,000 in principal for its 2024s and $1,037.50 for the 2025s, including a $30 premium for meeting the early deadline. Bondholders have until February 8 to tender more notes with the $30 payment. The 2024s and 2025s are currently trading at 102.51 and 103.55 respectively on the secondary markets.
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