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Pilgrim's Pride gets tenders for 73.2% of Gold Kist's 10¼% notes before early deadline, sets pricing
By Jennifer Chiou
New York, Oct. 12 - Pilgrim's Pride Corp. announced it received tenders from holders of $95.2 million or 73.2% of Gold Kist's 10¼% senior notes due March 15, 2014 as of 9 a.m. ET on Oct. 12.
The tender offer expires at midnight ET on Oct. 27. The consent deadline is 5 p.m. ET on Oct. 13. It began on Sept. 29.
Based on an assumed payment date of Oct. 30, holders who have validly tendered with consents before the consent deadline will receive $1,154.77 for each $1,000 principal amount or notes. The payout includes a $30.00 consent payment.
Pricing was determined at 10 a.m. ET on Sept. 29, when the reference yield was 4.779%.
Payment in the tender offer is based on the bid-side price of the 2.625% U.S. Treasuries due March 15, 2009 on the price determination date plus 50 basis points.
Pilgrim's Pride will also pay accrued interest up to but excluding the payment date for the notes.
The offer is being conducted alongside the company's equity tender offer to purchase outstanding shares of Gold Kist for $20.00 each.
In addition to offering to buy the notes, Pilgrim's Pride is seeking consents for amendments to some terms of the note indenture, including eliminating substantially all restrictive covenants and some events of default.
Holders may not tender the notes without providing consents.
The tender is subject to Pilgrim's Pride receiving consents from holders of a majority of the notes and conditions related to its proposed acquisition of Gold Kist.
Lehman Brothers Inc. (800 438-3242 collect 212 528-7581) is acting as dealer manager and solicitation agent. Innisfree M&A Inc. (877 687-1874) is the information agent.
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