By Brazil Stock Guide – Minerva SA (BEEF3), one of South America’s leading beef exporters, said Wednesday (April 15) it completed a $600 million international bond offering through its subsidiary Minerva Luxembourg SA, in a move aimed at extending maturities and actively managing its debt profile. The notes, due in 2036, carry a 7.5% coupon.
The transaction drew strong investor demand, reaching 2.5 times the initial deal size, underscoring continued appetite for the company’s credit even as leverage remains elevated.
Proceeds will be primarily used to refinance existing debt, rather than reduce it, meaning the operation should be largely neutral for net debt levels in the short term. Minerva is expected to remain highly leveraged, with net debt to EBITDA around 2.9x — or closer to 4.8x when including instruments such as customer advances and forfait, which effectively increase its financial obligations.
Beyond leverage, the company’s financial profile is also defined by a relatively high cost of capital. The 7.5% coupon in dollars reflects both global interest rates and a risk premium associated with its credit profile, translating into elevated financial expenses — expected to remain in the range of hundreds of millions of reais per quarter. This dynamic limits earnings conversion despite solid operating performance, as a significant portion of cash generation is absorbed by debt servicing.
While the issuance helps extend the maturity profile and reduce near-term refinancing risk, it does little to alleviate the structural pressure from financing costs. As a result, Minerva’s equity story remains closely tied to its ability to deleverage over time, either through stronger cash flow generation, asset rotation, or liability management.
The bonds are guaranteed by Minerva and were offered to qualified institutional buyers under Rule 144A of the U.S. Securities Act, as well as to non-U.S. investors under Regulation S.
The company said the issuance is part of its ongoing strategy to optimize its capital structure. Still, for investors, the key question remains whether operational gains will be sufficient to offset cost pressures — particularly in a scenario of tighter cattle supply and margin compression in Brazil.
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