Smithfield gets uncommitted line of credit agreement for up to $150 million

By Sara Rosenberg

New York, May 22 - Smithfield Foods Inc. executed a secured uncommitted line of credit agreement with Citibank for up to $150 million, according to an 8-K filed with the Securities and Exchange Commission Thursday.

Under the agreement, which was obtained on May 16, Citibank may, from time to time, make advances to the company through Nov. 18.

Pricing on the loan is Libor plus 400 basis points or a quoted rate.

Proceeds of any advances are to be used solely for general corporate purposes.

On May 20, the company borrowed $100 million under the agreement under a quoted rate advance at an approximate interest rate of 6.57%. Those borrowings were used to pay down revolver debt.

Smithfield is a Smithfield, Va.-based processor and marketer of fresh pork and packaged meats.

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