ConAgra gets $600 million term loans via BofA, Goldman, Wells Fargo

By Marisa Wong

Morgantown, W.Va., Jan. 20 – ConAgra Foods, Inc. entered into separate letter agreements on Jan. 15 with each of Bank of America, NA, Goldman Sachs Bank USA and Wells Fargo Bank, NA for $600 million of term loans, according to an 8-K filing with the Securities and Exchange Commission.

Each agreement provides for a single unsecured term loan in the amount of up to $200 million. The terms of the three term loans are substantively identical.

The term loans mature on April 26, 2016 and are subject to mandatory prepayment with cash proceeds from the sale of the company’s private brands business.

The term loans bear interest at Libor plus 100 basis points.

Loan proceeds may only be used to repay amounts outstanding under the company’s 1.3% senior notes due Jan. 25, 2016.

Each term loan agreement incorporates the affirmative and negative covenants and events of defaults contained in the company’s revolving credit agreement dated Sept. 14, 2011 with JPMorgan Chase Bank, NA as administrative agent. Each agreement additionally contains events of default customary for unsecured short-term investment-grade credit facilities.

ConAgra is a commercial and consumer foods company based in Omaha.

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