JBS is the world’s largest meat company. The financing, which closed on Thursday 30 June, was structured as a revolving ABL (asset based loan) with a facility limit of US$850 million. Availability under the facilities is calculated as a percentage of eligible accounts receivable and inventory. The size, structural complexities and cross border issues involved made this a landmark deal in the ABL space.
The Mallesons team was led by Banking Partner Richard Hayes who was assisted by Senior Associate Greg Nicholas and associate Matthew Horn. Skadden, Arps, Slate, Meagher & Flom LLP acted as US counsel for the banks.
JBS was represented in Australia by Allens Partner John Gallimore and Associate Aaron Davis. Shearman & Sterling acted as US counsel for JBS.
Richard Hayes said: “This was an interesting transaction to work on as it was part of a global refinancing for the world’s largest beef producer and involved us bringing together experts from our banking, tax and stamp duty teams to structure the deal in the most efficient manner. We are seeing an increase in popularity of these ABL facilities as they provide banks with excellent security coverage and borrowers with increased liquidity (particularly as businesses recover from the GFC), and, as such, are seen as a win-win for both banks and borrowers.”
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