December 2020 – Astris Finance is pleased to announce the closing of a $550 million 5-year bond by a Luxembourg affiliate of FS Agrisolutions Industria de Biocombustíveis Ltda (“FS”) which marks its first transaction in the US 144a market. The green bond was placed by Morgan Stanley as sole bookrunner and the proceeds will be used to repay existing project-finance debt and pay transaction expenses. The bond settled on December 15, 2020.
FS is a leading low-carbon biofuel producer in Brazil and also produces animal nutrition products for sale in the area of its headquarters in Mato Grosso state. Astris has advised FS and its leading shareholders Summit Agricultural Group and Tiger Infrastructure Partners since 2017 with respect to positioning in the financial markets, capital structure optimization and overall financial strategy. Our work led to a series of financing transactions which culminated in December’s successful bond issuance. Compared to the prior project finance structure, the bond’s traditional high yield covenant package will grant the business more flexibility to execute upon its business plan.
“We were delighted to assist FS in closing out 2020 on such a high note,” said Tobey Collins, Astris Head of Energy, Americas. Justin Kirchhoff, President of Summit Ag Investors, complemented “Completing this bond offering opens a new chapter for the FS business and we appreciate Astris Finance’s advice over the evolution of our financing structure in the last couple of years.”
Summit Agricultural Group is a diversified agribusiness operator and investment manager with operations in the United States and Brazil. Summit deploys capital across the agricultural supply chain with a particular focus at the intersection of agriculture and renewable energy. For more information, visit: www.summitag.com
Tiger Infrastructure Partners is a middle-market private equity firm that invests in growing infrastructure platforms. Tiger Infrastructure targets investments in communications, energy transition, transportation, and related sectors, primarily located in North America and Europe. For more information, visit www.tigerinfrastructure.com.