Brazilian Beef Producer Minerva Plans $1B Bond Sale: Lucror

(Bloomberg) -- Sao Paulo-based Minerva SA may issue as much as $1b of senior, unsecured notes due 2031 as soon as Wednesday, Lucror Analytics analyst Soummo Mukherjee wrote in a note.

* Beef producer to use bond proceeds to fund an earlier announced cash tender offer for notes due 2026

** NOTE: Previously, Minerva Luxembourg: HSBC Launched Tender Offer for 6.500% Notes

* Lucror seees fair value in the mid 4s, assuming an issuance of 10 years

** Assessment “takes into consideration the tougher cattle price outlook for Brazil in H1/21, which should put pressure on EBITDA margins,” as well as comparable deals from peers with a similar BB credit rating

* Investor calls began March 1; pricing expected March 3, Lucror says

* NOTE: Minerva bonds due 2026 trade for 105 cents on the dollar, according to Trace data

By Ezra Fieser