Deutsche Bank in Connection with Marfrig’s Assignment of over $360 Million in Export Prepayment Facilities to JBS

October 3, 2013

Cleary Gottlieb represented Deutsche Bank AG, London Branch in connection with the assignment by Marfrig Alimentos of two senior secured export prepayment facilities totaling $360 million to JBS S.A. as part of JBS’s acquisition of the Seara poultry division of Marfrig in Brazil. The assignment closed on October 3, 2013.

JBS had agreed to assume Marfrig’s export prepayment debt as payment for the acquisition of Marfrig’s poultry and processed food Seara division. Under the terms of the sale of Seara, JBS is assuming a total of BRL5.8 billion ($2.6 billion) of debt from Marfrig. The sale is part of Marfrig’s strategy to deleverage the company and raise cash.

JBS is the world’s largest beef producer and Marfrig is Brazil’s third largest meatpacking company whose business focuses on the production and distribution of processed foods and animal proteins.