AdvancePierre repays loan via Morgan Stanley, Wells Fargo after buyout

By Susanna Moon

Chicago, June 9 – AdvancePierre Foods, Inc. repaid its term loan with Morgan Stanley Senior Funding, Inc. as administrative agent and terminated its commitments with Wells Fargo Capital Finance, LLC as administrative agent.

The repayments were made in connection with the $4.2 billion acquisition of the company by Tyson Foods, Inc., according to an 8-K filing with the Securities and Exchange Commission.

As reported April 25, Tyson secured committed bridge financing from Morgan Stanley Senior Funding, Inc. for the deal and to retire AdvancePierre’s debt.

“We’re going to borrow about $4.5 billion in debt in the neighborhood of 3.5%,” executive vice president and chief financial officer Dennis Leatherby said on the company’s conference call announcing the tender.

Added president, chief executive officer and director Thomas P. Hayes, “We intend to use our strong cash flows to rapidly pay down debt and return to our leverage within our target range.”

The meat and food production company is based in Springdale, Ark.

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