News
Smithfield Foods: $500 mil senior secured notes and $1 bil credit facility 26 Jun 2009
Smithfield Foods, Inc. announced that it is initiating an offering, subject to market and other conditions, of $500 million of senior secured notes due 2014.
The company intends to use the proceeds from the notes offering to repay certain indebtedness and for other general corporate purposes.
The notes will be offered and sold to qualified institutional buyers in the United States pursuant to Rule 144A and outside the United States 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 notes and guarantees will be secured by first-priority liens, subject to permitted liens and exceptions for excluded assets, in substantially all of the company's and its subsidiary guarantors' fixed assets, including certain real property, fixtures and equipment and tangible personal property, and by second-priority liens, subject to permitted liens, in substantially all of the company's and its subsidiary guarantors' cash and cash equivalents, certain material intellectual property, the common equity of the subsidiary guarantors, inventory, accounts receivable and other personal property relating to such inventory and accounts receivable.
New $1 billion asset-based credit facility
The Company also has begun arranging a new $1 billion asset-based credit facility. 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 has begun arranging a new $1 billion asset-based credit facility. 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.
Similar to the notes, the new credit facility will be guaranteed by substantially all of the U.S. subsidiaries of the company. The new credit facility will be secured by first-priority liens, subject to permitted liens and exceptions for excluded assets, in substantially all of the company's and its subsidiary guarantors' cash and cash equivalents, certain material intellectual property, the common equity of substantially all of the U.S. subsidiaries, inventory, accounts receivable and other personal property relating to such inventory and accounts receivable and certain other assets, and by second-priority liens, subject to permitted liens, in the assets in which the notes being offered will have a first priority lien.
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 sale of the notes and closing of the new credit facility and new term loan are expected to be consummated in early July 2009, subject to market and other customary conditions.
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 United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state laws.
Source: Smithfieldfoods.com
More News
- 12 Mar 2010BSE cow delays Canada's OIE status
- 12 Mar 2010US aims to increase pork exports
- 12 Mar 2010Inspection cuts raise concerns
- 11 Mar 2010Slight drop in Brazilian beef exports
- 11 Mar 2010Customs union may raise EU pork imports
- 11 Mar 2010Shopper cards help trace salmonella
- 10 Mar 2010Russian processor to invest US$100 million
- 10 Mar 2010Govnt gives 75-million to beef industry
- 10 Mar 2010British retailers use misleading labels
- 09 Mar 2010FDA to prosecute more food execs
- 09 Mar 2010Uruguay sheep exports to Russia rise
- 09 Mar 2010Beef imports to Korea to increase 33%
- 08 Mar 2010Govnt will do risk study on beef imports
- 08 Mar 2010US to launch probe of big agriculture
- 08 Mar 201030 million Euro for new Polish slaughterhouse
- 05 Mar 2010US wholesale pork prices rise
- 05 Mar 2010Australia struggles to satisfy Korean demand
- 05 Mar 2010US hopes to re-start pork exports
- 04 Mar 2010Unsafe slaughterhouse practices
- 04 Mar 2010Lamb exports worth over 100 mln Pounds
- 04 Mar 2010Russia may be forced to increase imports
- 03 Mar 2010African swine fever threatens Eastern Europe
- 03 Mar 2010India's dairy industry wants end to meat subsidies
- 03 Mar 2010More abattoir and processor closures imminent
- 02 Mar 2010British pork groups to focus on climate
- 02 Mar 2010Russia to simplify EU import procedures
- 02 Mar 2010Pork sector hope for pass of trade deals
- 01 Mar 2010Rain adds to Australian abattoirs problems
- 01 Mar 2010Major retailers pledging to boycott foreign beef
- 01 Mar 2010Russia largest market for Brazil in 2009
- 26 Feb 2010China lifts ban, as markets reopen to Canadian pork
- 26 Feb 2010Pigs imported to increase pork production
- 26 Feb 2010American meat production up along with prices
- 25 Feb 2010UK now has its own COOL on pork products
- 25 Feb 2010Chinese city orders pigs rest pre-slaughter
- 25 Feb 2010China the largest beef consumer by 2015
- 24 Feb 2010Coleman introduces natural Halal goat
- 24 Feb 2010Poland will tighten slaughter requirements
- 24 Feb 2010Govnt oks processor takeover by JBS Swift
- 23 Feb 2010US industry worries about abandoning NAIS
