The Vilela de Queiroz family, which consists of several first-generation siblings and their children, controls São Paulo-listed Minerva SA, Brazil’s third-largest beef producer. The company also exports live cattle and produces leather. In addition to Minerva, the family owns numerous private companies, including its original cattle-transport business founded in the 1960s by Edivar Vilela de Queiroz, as well as several livestock companies. Edivar’s son, Fernando Galletti de Queiroz, has been Minerva’s CEO since 2007.
In contrast to its competitors, Minerva has received relatively little financing from state-owned Brazilian Development Bank (BNDES) and other government lenders. Although its growth has been slower and it lacks its rivals’ global scope, Minerva’s independence from politically-linked financing has helped insulate it from corruption scandals. Lack of access to cheap loans has prompted frequent use of equity financing, however, resulting in dilution of the family’s stake.
Minerva has three USD bonds with USD 2.15bn outstanding, which represents 73% of its total debt. In December 2017, the company issued USD 500m 5.875% senior unsecured notes due 2028, which funded a tender offer for USD 198m of its 7.75% notes due 2023. In March 2018, it announced the issuance of perpetual notes to fund a tender offer for its 8.75% perpetual notes. The 2026, 2028 and perpetual bonds last traded at 96.4, 92.5 and 103.5, respectively.
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