JBS secures loan for Cargill Pork deal
July 13, 2015
by Erica Shaffer
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SÃO PAULO, Brazil – JBS SA's pork unit has received a loan of $1.2 billion to pay for its acquisition of Cargill’s pork business. The loan will be used with cash on hand to finance the deal which is valued at $1.45 billion.
The loan has a maturity of seven years with an expected interest rates equal to Libor plus 2.75 percent per annum, with a minimum Libor rate of 0.75 percent, the company explained in a statement. Credit Suisse AG, Bank of America Merrill Lynch and Rabobank Nederland, New York Branch are financing the loan.
The acquisition includes two Midwest meat processing plants and five feed mills. If approved, the acquisition will make JBS one of the largest pork processors in the world.