Smithfield amends and restates loan, revising maturity and spread

By Sara Rosenberg

New York, Sept. 6 - Smithfield Foods Inc. extended the maturity on its term loan to May 2018 from June 2016 and increased pricing to Libor plus 400 basis points from Libor plus 375 bps, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Also, in connection with the repayment of all $589.4 million of the company's 10% senior secured notes due 2014, the security for the term loan was released, making the debt unsecured.

The term loan requires one $25 million amortization payment due in June 2015. The remainder is due at maturity.

In addition, the loan has a minimum interest coverage ratio of 1.75 to 1 starting with the fiscal quarter ending in January 2013.

The amendment and restatement was completed on Aug. 31.

Rabobank is the administrative agent on the deal.

Smithfield Foods is a Smithfield, Va.-based pork processor and hog producer.

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