Brazilian Soy Grower Amaggi to Sell $500m of Debut Bonds: Lucror

(Bloomberg) -- Andre Maggi Participacoes SA, a Brazilian commodities producer, plans to issue a benchmark-sized, sustainability dollar bond with an intermediate maturity of seven or 10 years, Lucror Analytics analyst Soummo Mukherjee writes in a note.

- Amaggi to use proceeds to repay some short-term debt, for working capital and to finance eligible projects under its sustainability bond framework.

- Mato Grosso-based Amaggi is one of the largest Brazilian agricultural companies, producing soybeans, soy seeds, corn and cotton.

- Lucror sees fair value in the high 5% range for a 10-year offering and mid-5% area for seven-year notes.

-- “We are conservative in our fair-value assessment of the proposed USD 500 mn senior unsecured notes, due to its first time issuer status as a private company with no track record with bond investors of adhering to its financial policies, the level of subordination of the proposed unsecured bond, and the weak protection to bondholders under the current indenture”

- Proposed notes rated Ba3 (stable) by Moody’s and BB (stable) by Fitch