Tyson Foods said it borrowed $500 million in a new term loan agreement with lenders led by Bank of America. Of that, $250 million will be used to refinance outstanding debt under the company’s $1.5 billion term loan dated March 27, 2020.
The new loan matures on March 22, 2023, according to a filing with the U.S. Securities and Exchange Commission late Thursday. The term loan will initially accrue interest at an annual rate equal to the eurocurrency rate plus 0.80%. The rate is subject to conversion as requested by Tyson Foods to the highest prime rate as published by the Wall Street Journal, the federal funds rate or overnight bank funding rate, whichever is greatest.
The complete terms of the loan can be found online in the 85-page filing.