Frigorífico Concepción’s $100 Million Senior Secured Bond Offering

Morgan Lewis has advised Frigorífico Concepción on the deal. Greenberg Traurig, LLP acted as U.S. counsel to Oppenheimer & Co. Inc., the initial purchaser and sole bookrunner.

Frigorífico Concepción completed a $100 million senior secured bond offering that closed on January 29, 2020. Frigorífico Concepción’s obligations on the bonds have been guaranteed by its Bolivian subsidiary Frigorífico BFC.

The company’s offering of its 10.25 percent senior secured notes due 2025 was made in the United States in reliance on Rule 144A and outside the United States in reliance on Regulation S.

The notes are guaranteed by Frigorífico BFC S.A (Guarantor), a Bolivian beef processing company, and secured by a lien on certain real estate property and equipment of the Company located in Paraguay, certain trade receivables of the Company, a pledge of 97.96 percent of the equity interests in the Company, and a pledge of 51 percent of the equity interests in the Guarantor. The proceeds of the issuance were mainly used by the Company to restructure its debt in Paraguay.

Founded in 1997, Frigorífico Concepción is a Paraguayan beef processing company. The company produces high quality beef, based on strict control in the raising of cattle meat, cutting and handling of the final product, satisfying the needs of its internal and external customers, ensuring experience and tradition, always developing actions aimed at achieve respect for the environment.

Morgan Lewis partner Carter Brod (Picture) in London led the team advising Frigorífico Concepción, which included partners Thomas Mellor and Howard Kenny in New York.

The Greenberg Traurig New York office attorney team was led by Partner Marc Rossell and Partner Oscar Stephens. Additional team members included Tax Practice Partner Erez I. Tucner, Associate María Velasco, and Foreign Law Clerk Juanita Bermudez.

Involved fees earner: Marc Rossell – Greenberg Traurig; Oscar Stephens – Greenberg Traurig; Erez Tucner – Greenberg Traurig; María Velasco – Greenberg Traurig; Carter Brod – Morgan Lewis; Howard Kenny – Morgan Lewis; Thomas Mellor – Morgan Lewis;

Law Firms: Greenberg Traurig; Morgan Lewis;

Clients: Frigorífico Concepción; Oppenheimer & Co;