J&F $1.32 billion export prepayment facility

Davis Polk advised the arrangers and lenders in connection with a $1.32 billion export prepayment facility for J&F S.A., as borrower, guaranteed by Eldorado Brasil Celulose S.A., LHG Mining Ltda. and Flora Produtos de Higiene e Limpeza S.A. The facility also permits J&F to establish up to $480 million of additional advances. The proceeds of the advances will be used to finance the export of products, including through the refinancing of existing indebtedness, and to pay fees, costs and expenses incurred in connection with the negotiation, execution and performance of the facility.

J&F is a privately held company that identifies, acquires and develops businesses with significant value-creation potential. Over several decades, J&F has built one of the largest family-owned industrial conglomerates in Brazil, with operations in more than 25 countries and an aggregate workforce of approximately 300,000 employees. The company controls a diversified portfolio of businesses operating across a range of industries, including power, food (through JBS N.V. and its subsidiaries), pulp (through Eldorado), iron ore (through LHG Mining) and hygiene and beauty (through Flora).

The Davis Polk corporate team included partner Manuel Garciadiaz, counsel James Vickers and associate Alexandre Diniz. Counsel Liang Zhang and associate Zoey Chau provided tax advice. Members of the Davis Polk team are based in the São Paulo and New York offices.