Marfrig Global Foods S.A.’s $720 Million Shares Offering

Jones Day advised Santander Investment Securities Inc., Bradesco Securities, Inc., J.P. Morgan Securities LLC, Banco do Brasil Securities LLC and Jefferies LLC, as international placement agents, in connection with an international offering of 299,738,518 common shares of Marfrig Global Foods S.A. (“Marfrig”), represented by a primary offering of 90,090,091 common shares by Marfrig and a secondary offering of 209,648,427 common shares by BNDES Participações S.A. – BNDESPAR, as the selling shareholder. The transaction is expected to be the first of a series of significant divestments from Brazilian state-owned development bank BNDES.

The total gross proceeds from the offering were approximately BRL $3.0 billion, or USD $720 million. The primary offering generated net proceeds of approximately BRL $890 million, or USD $215 million, and the secondary offering generated net proceeds of approximately BRL $2.1 billion, or USD $500 million. Marfrig will use the net proceeds from the primary offering to pre-pay certain debt. Marfrig did not receive any proceeds from the secondary offering.

Marfrig is a leading Brazilian corporation in the global protein industry engaged in the production, processing, sale and distribution of meats and other food products.

The Jones Day team was led by Rory Hood (Picture), Wade Angus (New York/São Paulo), and Marcello Hallake (São Paulo/New York).

Involved fees earner: Wade Angus – Jones Day; Marcello Hallake – Jones Day; Rory Hood – Jones Day;

Law Firms: Jones Day;

Clients: Marfrig Global Foods S.A.;

Author: Ambrogio Visconti