Tyson secures new credit line

by Editor fleischwirtschaft.com
Thursday, March 12, 2009

Tyson Foods, Inc. announced that it entered into a $1 billion senior secured credit facility with JPMorgan Chase Bank, N.A., as Administrative Agent.

The new credit facility is secured by the company’s cash, accounts receivable and inventory and is guaranteed by substantially all of the company’s domestic subsidiaries. It replaces the company’s previous revolving credit facility for which the company and certain of its material subsidiaries pledged substantially all their assets as collateral. The new credit facility is scheduled to mature, and the commitments thereunder will terminate, on March 9, 2012.

In addition, the company has closed its previously announced offering of $810 million aggregate principal amount of 10.50% senior notes due 2014. The company intends to use the proceeds from the note offering to repay borrowings and terminate commitments under its accounts receivables facility, repay and/or refinance other indebtedness and for other general corporate purposes.

The new credit facility and notes offering were both initiated as part of Tyson’s ongoing debt management efforts.