During a period of 12 months, JBS Brazil will continue paying interest incurred under the terms of the original contracts, as well as four installments of 2.5 percent of the principal owed, with the first installment due upon initiation of the agreement and the remaining in 90, 180 and 270 days, respectively.
“If certain liquidity events occur, such as the sale of equity interests, with the exception of the sale of the beef operations in Argentina, Paraguay and Uruguay announced to the market on June 6, 2017, JBS Brazil will amortize the indebtedness underlying such Agreement in an amount equivalent to 80 percent of the net proceeds from such liquidity events,” the company said in a securities filing.
Additionally, JBS reached an agreement with Itaú Unibanco Group that provides for the renegotiation of R$1.2 billion of debt. Forty percent of the total debt will be paid as originally contracted and the remaining 60 percent will be renewed, under original conditions, for 12 months from the originally stipulated maturities, JBS said.
“The terms of the Agreements will ensure the financial liquidity and regularity of JBS’ operations, as they allow for the stabilization of short-term indebtedness and the preservation of the bank’s agreements in their original conditions, which is necessary to ensure the stability of JBS’ financial profile,” the company explained.