GREELEY, COLO. – Pilgrim’s Pride Corp. announced on Aug. 19 that its senior unsecured notes increased to $900 million.
The aggregate principal amount of the notes was upsized from $750 million due to significant investor demand, according to the company.
Pilgrim’s Pride stated that it intends to use the $900 million note and the borrowings of the delayed draw term loan under its secured credit facility to finance its acquisition of the Meats and Meals business of Kerry Consumer Foods in the United Kingdom and Ireland.
The remaining proceeds will be used to repay outstanding revolver borrowings under the secured credit facility and for general corporate purposes.
Financial services company S&P Global confirmed that this move was made after JBS SA, the majority owner of Pilgrim’s Pride share, announced last week that it is looking acquire the remaining ownership shares.
S&P also affirmed the BB+ issuer credit rating for JBS and revised its outlook from stable to positive.
JBS became majority owner of Pilgrim’s Pride in 2009, with an $800-million investment that allowed the financially troubled poultry producer and processor to emerge from bankruptcy protection.
The deal is subject to approval by Pilgrim’s board of directors and shareholders of the remaining stock not currently owned by JBS.