By Cristal Cody
Chicago, Sept. 9 – Smithfield Foods, Inc. sold an upsized $500 million of 2.625% 10-year notes (Ba1/BBB-/BBB) with a Treasuries plus 145 basis points spread on Wednesday, according to a market source.
The split-rated transaction priced off the investment-grade desk.
BofA Securities, Inc. is the lead on the Rule 144A and Regulation S deal.
Price talk for the notes, which will mature Sept. 13, 2031, was in the 180 bps area over Treasuries.
Smithfield will use net proceeds from the new notes to refinance existing debt, including repayment of the existing 2.65% notes coming due in October 2021 and borrowings under the company's revolving credit facility, according to a ratings announcement from Moody's Investors Service.
Smithfield, Va.-based Smithfield Foods is a food company and a wholly owned subsidiary of China-based WH Group Ltd.
| Issuer: | Smithfield Foods, Inc.
|
| Issue: | Senior notes
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| Amount: | $500 million
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| Maturity: | Sept. 13, 2031
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| Bookrunner: | BofA Securities, Inc.
|
| Coupon: | 2.625%
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| Spread: | Treasuries plus 145 bps
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| Trade date: | Sept. 8
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| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | Treasuries plus 180 bps area
|
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