Smithfield secures $1.2 billion credit line
June 10, 2011
by Meat&Poultry Staff
SMITHFIELD, Va. – Smithfield Foods Inc. has entered into new revolving credit facilities totaling $1.2 billion with Rabobank Nederland, New York branch, as administrative agent. This will replace Smithfield’s previous $1.0 billion revolving credit facility and include an option to increase available commitments to $1.5 billion in the future, subject to certain conditions.
The new credit facilities consist of a $925 million asset-based revolving credit facility and a $275 million accounts receivable securitization facility scheduled to mature in June 2016 and June 2014, respectively.
"Last year, we embarked on an aggressive plan to restructure our balance sheet,” said C. Larry Pope, president and CEO. “The refinancing of our working capital credit facility was a crucial step in achieving a number of the goals set forth in this plan; namely, to reduce interest expense and extend debt maturities, while ensuring ample liquidity. We are pleased to have received overwhelming support from all of our existing lenders, in addition to several new banks who committed to these facilities.”
Smithfield has also extended its $200 million term loan with Rabobank Nederland, which was previously scheduled to mature in August 2013, out to June 2016.