The new credit agreement was made to support the company's future growth plans. Sanderson Farms had approximately $11 million outstanding letters of credit under the credit facility, which is run through a consortium of banks.
“We are pleased to make these amendments to our credit facility to support our strategic growth plan for the next five years, including the construction of our new poultry complex in Palestine, Texas,” said Joe Sanderson Jr., chairman and CEO of Sanderson Farms. “We appreciate the support of our bank group and we believe the amended terms and covenants reflect their confidence in the future of Sanderson Farms.”
Sanderson Farms set Oct. 1 as the start date for work to begin on the Palestine project, which includes a new feed mill, hatchery, processing plant and a wastewater treatment facility. Once complete and operational, the facility will have a processing capacity of 1.250 million head of chickens per week.