Tyson Foods to Make $500M Notes Offering
by February 23, 2009 12:00 am 58 views
Tyson Foods Inc. of Springdale said Feb. 19 that it is initiating an offering of $500 million of unsecured senior notes due 2014 and that it will use the proceeds to repay borrowings and terminate commitments under its existing accounts receivables facility.
The meat processor also said it would use the proceeds to repay or refinance other indebtedness and for other general corporate purposes.
The notes will be offered and sold to qualified institutional buyers.
The company also said it will arrange a new senior secured credit facility of up to $1 billion, which will be secured by the company’s cash, accounts receivable and inventory and will be guaranteed by the company’s domestic subsidiaries.
Tyson said the new credit facility will replace the company’s existing revolving credit facility for which it and certain subsidiaries pledged all their assets as collateral.
The company said sale of the notes and closing of the new credit facility are expected to be consummated in March.