NEW YORK, Oct 1 (IFR) - Bonds issued by Brazilian beef company Marfrig were tumbling on Thursday following news that police were conducting a search-and-seizure operation at its offices.
The company’s 8.375% 2018s were down close to 2.5 points to hit 91.220.
The raid is part of an investigation into alleged irregularities with the financing of the 2014 election campaign of the state of Minas Gerais’s governor, according to Reuters.
Marfrig “has or had no relationship with the matters being investigated on this operation,” it said in a statement on Thursday.
The company this week launched an up to US$700m bond tender as part of an effort to pay down debt with proceeds garnered from the sale of its European food unit Moy Park. (Reporting by Davide Scigliuzzo; Editing by Marc Carnegie)