JBS SA, the world’s largest beef producer, is offering to pay bondholders about $6.75 million in exchange for covenant changes that will allow the company to spin off its Vigor Alimentos SA dairy unit.
JBS said in a statement that it’s offering to pay a fee of $5 for each $1,000 in principal on its 11.625 percent bonds due 2014, 10.5 percent notes due 2016 and 10.25 percent securities due 2016. The consent on $1.35 billion of securities aims to allow the company to sell assets that account for less than 2 percent of its sales.
The company led by Chief Executive Officer Wesley Batista plans to spin off Vigor and list its shares in Sao Paulo as it seeks to compete with Danone SA and Nestle SA. The Sao Paulo-based company said on April 9 that it offered to swap 149.7 million of its shares for the same amount in Vigor, valuing the unit at 1.19 billion reais ($630 million).