JBS SA is working to finalize a term loan and an asset-based loan, which should be concluded within the next weeks, totaling an extra US$1.2 billion.
Company executives said significant benefits are seen by the company in its rebalancing debt process, including savings of around US$150 million a year from debt cost reduction, since these notes carry a lower interest rate than that of the average interest of the company’s current debt, and a more balanced and efficient tax structure.
JBS SA management estimates the ongoing effective tax rate will return to normalized levels upon completing the debt rebalancing effort. Along with the above, the debt rebalancing allows the company to reduce its currency mismatch and consequently reduce its hedging needs.
The company’s US-based subsidiary, JBS USA will discuss its 2011 first quarter performance with shareholders at May 25 at 10 a.m. (Eastern time).