SPRINGDALE, Ark., March 9, 2009 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE:TSN) today 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.
"Given the current financial market, we believed it was prudent for us to proceed with these measures now," said Dennis Leatherby, executive vice president and chief financial officer for Tyson Foods. "The offering and new credit facility provide Tyson with continued financial flexibility, giving us the option of paying off some existing debt early as well as funds for future financing needs."
This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any securities of the company. The senior notes were sold only to qualified institutional buyers in reliance on Rule 144A, and outside the United States in compliance with Regulation S under the Securities Act of 1933, as amended. The senior notes have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Tyson Foods, Inc., founded in 1935 with headquarters in Springdale, Arkansas, is the world's largest processor and marketer of chicken, beef and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500. The company produces a wide variety of protein-based and prepared food products and is the recognized market leader in the retail and foodservice markets it serves. Tyson provides products and services to customers throughout the United States and in more than 90 countries. The company has approximately 107,000 Team Members employed at more than 300 facilities and offices in the United States and around the world.
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Certain information contained in this press release may constitute forward-looking statements, such as statements relating to expected earnings and results. These forward-looking statements are subject to a number of factors and uncertainties which could cause our actual results and experiences to differ materially from the anticipated results and expectations, expressed in such forward-looking statements. We wish to caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. Among the factors that may cause actual results and experiences to differ from anticipated results and expectations expressed in such forward-looking statements are the following: (i) fluctuations in the cost and availability of inputs and raw materials, such as live cattle, live swine, feed grains (including corn and soybean meal) and energy; (ii) market conditions for finished products, including competition from other global and domestic food processors, supply and pricing of competing products and alternative proteins and demand for alternative proteins; (iii) successful rationalization of existing facilities and operating efficiencies of the facilities; (iv) risks associated with our commodity trading risk management activities; (v) access to foreign markets together with foreign economic conditions, including currency fluctuations, import/export restrictions and foreign politics; (vi) outbreak of a livestock disease (such as avian influenza (AI) or bovine spongiform encephalopathy (BSE)), which could have an effect on livestock we own, the availability of livestock we purchase, consumer perception of certain protein products or our ability to access certain domestic and foreign markets; (vii) changes in availability and relative costs of labor and contract growers and our ability to maintain good relationships with employees, labor unions, contract growers and independent producers providing us livestock; (viii) issues related to food safety, including costs resulting from product recalls, regulatory compliance and any related claims or litigation; (ix) changes in consumer preference and diets and our ability to identify and react to consumer trends; (x) significant marketing plan changes by large customers or loss of one or more large customers; (xi) adverse results from litigation; (xii) risks associated with leverage, including cost increases due to rising interest rates or changes in debt ratings or outlook; (xiii) compliance with and changes to regulations and laws (both domestic and foreign), including changes in accounting standards, tax laws, environmental laws and occupational, health and safety laws; (xiv) our ability to make effective acquisitions or joint ventures and successfully integrate newly acquired businesses into existing operations; (xv) effectiveness of advertising and marketing programs; (xvi) the effect of, or changes in, general economic conditions; and (xvii) those factors listed under Item 1A. "Risk Factors" included in the company's September 27, 2008, Annual Report filed on Form 10-K.