JBS S.A. Announces the Successful Syndication of the Financing (Term Loan) for the Acquisition of Cargill Pork Business in the United States

JBS S.A. (BM&FBOVESPA: JBSS3, OTCQX: JBSAY, “JBS” or “Company”) communicates to its shareholders and to the market in general, pursuant to CVM Instruction 358 of January 3, 2002, as amended, that on August 18, 2015, through its indirectly controlled subsidiary, JBS USA, LLC, it has successfully syndicated to the market US$1.2 billion aggregate principal amount of borrowings in the form of incremental term loans to JBS USA, LLC’s existing credit agreement (the “Incremental Term Loans”).  The Incremental Term Loans will have a final maturity of seven years from the date of the Cargill Acquisition (as defined below) and bear interest at a rate equal to the LIBOR rate plus 3.0% (with a minimum LIBOR rate of 1.0%).

The proceeds from the Incremental Term Loans will be used, together with cash on hand, to pay the consideration for the previously announced acquisition of certain assets, properties, and rights of Cargill Meats ownership in Cargill Pork LLC (the “Cargill Acquisition”).  The consummation of the Cargill Acquisition is subject to customary closing conditions, including receipt of requisite antitrust approvals.

The joint bookrunners for the financing were Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Pierce, Fenner & Smith Incorporated and Rabobank, New York branch.