Tyson Foods retires $510 million of senior notes during first quarter

By Jennifer Chiou

New York, Feb. 5 - Tyson Foods, Inc. used cash and restricted cash to retire $510 million total of its senior notes during the first quarter of fiscal 2010 ended Jan. 2 and through Friday, according to a 10-K filing with the Securities and Exchange Commission.

Specifically, the company bought back $34 million of its 7% notes due May 2018 during the quarter in addition to:

• The retirement and defeasance of its $140 million of 7.95% notes due on Feb. 1, 2010 on the maturity date;

• The purchase of $283 million total of its 8¼% notes due October 2011; and

• The repurchase of $53 million of its $923 million of 7.85% notes due April 2016.

Tyson said that it incurred one-time losses of $24 million on the repurchases that occurred subsequent to Jan. 2. However, the repurchases will reduce net interest expenses by about $8 million in the second quarter of fiscal 2010 and $10 million, or roughly $74 million total net interest expense, each subsequent quarter.

In addition, at the beginning of fiscal 2010, the company adopted new accounting guidance, which required it to record a discount on its 3.25% convertible senior notes due 2013, according to the filing. This discount will be accreted over the five-year term of the notes at the effective interest rate of 8.26%.

Tyson is a Springdale, Ark.-based processor and marketer of chicken, beef and pork.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.