Tear Sheet: Minerva S.A.

Minerva recently received antitrust approval for its acquisition of Marfrig?s assets in Brazil, Chile, and Argentina (although still subject to certain conditions), leading us to revise our estimates for Minerva's credit metrics. Our base-case scenario assumes the acquired assets will contribute to Minerva from fourth-quarter 2024 on, compared to our previous assumption that they would contribute starting in second-half 2024. The company's adjusted net leverage, measured as net debt to EBITDA, reached 3.8x in the last 12 months ended June 30, 2024. We forecast it to peak at 4.2x at the end of this year, which compares to a proforma basis of 3.6x for the year. We consider a cash outflow of R$5.0 billion–R$5.5 billion in 2024, and close to

...September 13, 2024 Minerva's adjusted net leverage will remain pressured in 2024. Minerva recently received antitrust approval for its acquisition of Marfrig's assets in Brazil, Chile, and Argentina (although still subject to certain conditions), leading us to revise our estimates for Minerva's credit metrics. Our base-case scenario assumes the acquired assets will contribute to Minerva from fourth-quarter 2024 on, compared to our previous assumption that they would contribute starting in second-half 2024. The company's adjusted net leverage, measured as net debt to EBITDA, reached 3.8x in the last 12 months ended June 30, 2024. We forecast it to peak at 4.2x at the end of this year, which compares to a proforma basis of 3.6x for the year. We consider a cash outflow of R$5.0 billion¡ R$5.5 billion in 2024, and close to R$1 billion from the Uruguayan operations in 2025, while the contribution from the acquired assets should occur from fourth-quarter 2024 on. As a result, we estimate that...

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