Smithfield prices senior secured notes

by Bryan Salvage
Share This:

SMITHFIELD, VA. — Smithfield Foods Inc. has priced its previously announced offering of senior secured notes due July 2014. With an interest rate of 10% per annum, the notes will be issued at a price equal to 96.201% of their face value.

Smithfield intends to use proceeds from the notes offering to repay borrowings and terminate commitments under its existing U.S. revolving credit facility, repay and/or refinance other indebtedness and for other general corporate purposes. The notes will be offered and sold to qualified institutional buyers in the U.S. pursuant to Rule 144A and outside the U.S. pursuant to Regulation S under the Securities Act of 1933.

The notes will be guaranteed by substantially all of the U.S. subsidiaries of the company.

The sale of the notes is expected to be consummated in early July, subject to market and other conditions, including the consummation of a new $1 billion asset-based credit facility and a new $200.0 million term loan. The new credit facility will replace the company's existing U.S. revolving credit facility and will include an option, subject to certain conditions, to increase available commitments to $1.3 billion in the future.

The company also is negotiating a new $200 million term loan expected to mature in August 2013 to replace its existing $200 million term loan that matures in August 2011. The new term loan would be guaranteed and secured on the same basis as the new senior secured notes.

The notes have not been registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the U.S. absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state laws.

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.

 

 


The views expressed in the comments section of Meat and Poultry News do not reflect those of Meat and Poultry News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.