JBS SIGNS AGREEMENTS WITH FINANCIAL INSTITUTIONS

– The institutions involved hold 93% of JBS Brasil’s debt;
– The agreements are intended to stabilize approximately R$ 21.7 billion in JBS Brazil debt over the next year.

 

São Paulo, July 25, 2017 – JBS is reporting that it has signed a number of agreements in order to protect its credit lines with financial institutions at home and abroad representing 93% of the principal amount of debts undertaken by operational subsidiaries in Brazil and the JBS global level division (JBS Brazil).

 

The terms of the agreements guarantee JBS’s financial liquidity and ensure normal operations will continue, stabilizing short-term debt and retaining the original terms of the bank agreements, which was necessary in order to change JBS’s financial profile.
The agreement involves a group of public and privately held financial institutions in Brazil and abroad and is intended to stabilize approximately R$ 20.5 billion in JBS Brazil debt over a 12-month period.

 

During this period, JBS Brazil will pay all of the interest accruing under the original agreements and pay 2.5% of the principal amount of the debt in four installments, the first falling Jew when the agreement takes effect and the others in 90, 180 and 270 days. If certain liquidity events occur, such as shareholding disposals, not including the sale of beef operations in Argentina, Paraguay and Uruguay announced to the market on June 6, 2017, JBS Brazil will amortize an additional portion of the debt under the agreement, equivalent to 80% of the net proceeds from such liquidity events.

 

In parallel with negotiations with the various financial institutions involved, JBS Brazil also signed an agreement to renegotiate its debts with the Itaú Unibanco Group, totaling approximately R$ 1.2 billion, under which 40% of the outstanding balance will be paid as originally agreed and payments and for the remaining 60% will be rolled over for 12 months from their respective maturity dates, but remain subject to the original terms and conditions agreed.

 

The negotiations were unanimously approved by the JBS Board of Directors.