Tyson Foods benefiting from solid capital structure

by Editor fleischwirtschaft.com
Thursday, June 18, 2009

Tyson Foods, Inc. reported that the capital restructuring it underwent in recent months secured more than $1.7 billion in liquidity as of March 28 and has ensured financial flexibility while addressing more than $1.8 billion in near-term debt maturities.
Speaking at the Barclays Capital Leveraged Finance Consumer Conference, Dennis Leatherby, Tyson's executive vice president and chief financial officer, said, Tyson had a solid capital structure and strong liquidity and financial flexibility.
In September, Tyson began capital restructuring by issuing 22.4 million Class A Common Shares and $458 million in Senior Convertible Notes. In March, the company completed an $810 million high yield bond offering and replaced its previous revolving credit facility with a $1 billion asset-based lending facility.
Despite volatile commodity markets, the debt load could be reduced,Leatherby said.
Tyson has previously reported that its chicken, beef, pork and prepared foods segments are all profitable. Leatherby said the chicken segment has made significant improvement as a result of sales volume, product mix, shorter-term contracts with customers and operational efficiencies. Leatherby also said Tyson's chicken business will have a stronger third quarter than indicated on its earnings call.
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