Smithfield to sell $350 million convertibles

New York, June 30 - Smithfield Foods, Inc. said it plans to offer $350 million of convertible senior notes due 2013.

Citi, Goldman, Sachs & Co. and JPMorgan are joint bookrunners for the registered sale.

The deal will have a $50 million greenshoe.

The notes will have contingent conversion and net share settlement.

Part of the proceeds will be used for convertible note hedge and warrants transactions. The remainder will be used to repay one of Smithfield's short-term credit lines and its U.S. revolver.

Receipt of the proceeds will result in termination of the commitments under a bridge facility put in place pending the sale of Smithfield's beef operations, a transaction currently expected to close during the second quarter of fiscal 2009.

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

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