Mallesons Stephen Jacques has acted as Australian counsel in a complex cross-border deal to provide new facilities for the world's largest meat company, JBS.
Mallesons acted for a JP Morgan-led syndicate of banks providing the facilities under the structure of a revolving asset-based loan (ABL) with a facility limit of $US850 million.
The size, structural complexities and cross-border issues involved in the financing deal, which closed on Thursday (30 June), 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
"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," said Hayes.
JBS was represented in Australia by Allens Arthur Robinson partner John Gallimore and associate Aaron Davis. Shearman & Sterling acted as US counsel for JBS.
"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," said Hayes.