Summary: Marfrig Global Foods S.A. - S&P Global Ratings’ Credit Research

Summary: Marfrig Global Foods S.A.

Summary: Marfrig Global Foods S.A. - S&P Global Ratings’ Credit Research
Summary: Marfrig Global Foods S.A.
Published Dec 10, 2018
9 pages (3361 words) — Published Dec 10, 2018
Price US$ 225.00  |  Buy this Report Now

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Abstract:

The two recent merger and acquisition (M&A) transactions improved Marfrig's leverage, which on a pro forma basis should result in net debt to EBITDA close to 4.0x for 2018 and 2019 from 5.6x in 2017. This will mainly result from the use of Keystone sale cash proceeds along with bond issuances this year to significantly restructure debt--pre-paying the bridge loan and other more expensive debt to lower the interest burden. This lower leverage, along with sustainable strong EBITDA at National Beef, will help improve cash flow generation. On June 7, 2018, Marfrig acquired a 51% stake in National Beef Packing Co. LLC (National Beef) from Leucadia for a total of $970 million. The acquisition was funded through a bridge loan

  
Brief Excerpt:

...The two recent merger and acquisition (M&A) transactions improved Marfrig's leverage, which on a pro forma basis should result in net debt to EBITDA close to 4.0x for 2018 and 2019 from 5.6x in 2017. This will mainly result from the use of Keystone sale cash proceeds along with bond issuances this year to significantly restructure debt--pre-paying the bridge loan and other more expensive debt to lower the interest burden. This lower leverage, along with sustainable strong EBITDA at National Beef, will help improve cash flow generation. On June 7, 2018, Marfrig acquired a 51% stake in National Beef Packing Co. LLC (National Beef) from Leucadia for a total of $970 million. The acquisition was funded through a bridge loan of $900 million from Rabobank plus a...

  
Report Type:

Summary

Ticker
MRFG3@BZ
Issuer
Marfrig Global Foods S.A.
GICS
Packaged Foods & Meats (30202030)
Sector
Global Issuers
Country
Brazil
Region
Latin America
Format:
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MLA:
S&P Global Ratings’ Credit Research. "Summary: Marfrig Global Foods S.A." Dec 10, 2018. Alacra Store. May 17, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Summary-Marfrig-Global-Foods-S-A-2141942>
  
APA:
S&P Global Ratings’ Credit Research. (). Summary: Marfrig Global Foods S.A. Dec 10, 2018. New York, NY: Alacra Store. Retrieved May 17, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Summary-Marfrig-Global-Foods-S-A-2141942>
  
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