Pilgrim's finalizes rights offering
March 7, 2012
by Meat&Poultry Staff
GREELEY, Colo. – Pilgrim's Pride Corp. announced on March 7 that the company has completed calculations for the allocation of shares in its rights offering.
Pilgrim's will issue a total of 44,444,444 shares of the company's common stock to stockholders that exercised their basic and over-subscription rights. Pilgrim's majority stockholder, JBS USA Holdings, Inc. exercised its basic and over-subscription rights in full, with their resulting ownership interest totaling 68 percent at the conclusion of the offering.
"We are pleased with the 94 percent participation rate in our offering exercised by our stockholders. There were oversubscription requests of 60 percent more than the shares we issued, which we believe signals confidence in the strategy we have implemented," said Bill Lovette, Pilgrim's chief executive officer.
Pilgrim's will receive $200 million of gross proceeds from the offering. The money will be used to improve the company's capital position and to fund general operating requirements. The new shares will be issued and available to stockholders by March 9, the date for the 2012 annual stockholder's meeting.