Brazil's JBS plans $2.5 bln debt placement - CEO

16 November 2009 @ 10:33 am EDT

Brazilian meatpacker JBS, the world's largest beef processor, plans to announce the terms of a $2.5 billion private placement of debt in 30 days, the company's chief executive Joesley Batista said on Monday.

Beef cattle feed on the Wulf farm in Morris, Minnesota, June 27, 2008. As Americans stock up on ground beef for Independence Day hamburgers this week, struggling cattlemen are watching a merger that some say could cost them millions of dollars. Brazil's JBS is awaiting U.S. Justice Department approval to buy two of the ranchers' big customers -- National Beef Packing Co and Smithfield Foods Inc's beef unit. Photo taken June 27, 2008.

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Batista said a recovery was occurring in the price of beef exports, which had been hurt by weakened demand when the financial crisis worsened in late 2008 and by the depreciation of the dollar against the Brazilian real this year.

The dollar has lost 36 percent of its value against the real since the beginning of 2009. The weaker dollar reduces earnings from Brazilian exports in local currency terms.

JBS said in September it would delay a separate $2 billion initial public offering in the United States by four months. The company is in the process of consolidating recent acquisitions in North America and Brazil.

JBS shares were up 0.8 percent at 9.22 reais in intraday trade on the Sao Paulo Stock Exchange.

(Reporting by Roberto Samora; Writing by Reese Ewing, editing by Gerald E. McCormick)

Brazil's JBS plans $2.5 bln debt placement - CEO

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