Pilgrim’s Pride and units up revolving commitments to $850 million

By Mary-Katherine Stinson

Lexington, Ky., Oct. 10 – Pilgrim's Pride Corp. and certain of its subsidiaries on Oct. 4 entered into a revolving syndicated facility agreement, which will replace the company’s fifth amended and restated credit agreement dated Aug. 9, 2021, according to an 8-K filing with the Securities and Exchange Commission.

To-Ricos, Ltd. and To-Ricos Distribution, Ltd. are the subsidiaries also designated as borrowers under the agreement.

The new syndicated facility increased the company's availability under the revolving loan commitment to $850 million from $800 million, amended certain covenants and extended the maturity date of the revolving loan commitments to Oct. 4, 2028 from Aug. 9, 2026.

Outstanding borrowings will bear interest at SOFR plus an applicable margin ranging from 100 basis points to 150 bps based on the company’s credit ratings. There is an unused fee ranging from 12.5 bps to 25 bps.

The initial rate will be SOFR plus 125 bps and an unused fee of 17.5 bps until the first full fiscal quarter after the effective date.

The facility is unsecured and the assets that previously secured the existing credit agreement have now been, or are in the process of being, released.

Proceeds will be used for general corporate purposes.

CoBank ACB is the administrative agent, issuing bank and swingline lender. CoBank is also the sustainability structuring agent.

Joining CoBank are the Bank of Montreal, Barclays, Cooperatieve Rabobank UA, New York Branch, ING Capital LLC, Mizuho Bank, Ltd., Royal Bank of Canada and Truist Bank as joint lead arrangers, joint lead bookrunning managers, joint syndication agents and co-documentation agents.

Regions Bank is the senior management agent and co-documentation agent.

Pilgrim’s Pride is a Greeley, Colo.-based poultry processor.

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