By Cristal Cody
Tupelo, Miss., Sept. 28 – Smithfield Foods, Inc. priced $400 million of 2.65% split-rated senior notes due Oct. 3, 2021 (Ba2/BBB-/BBB) in a Rule 144A and Regulation S offering on Thursday, according to a market source and a company news release.
The notes priced at a spread of Treasuries plus 115 basis points, tighter than guidance in the Treasuries plus 120 bps area, plus or minus 2 bps.
BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.
The notes initially will be guaranteed on a senior unsecured basis by each of the company's subsidiaries that is a borrower or a guarantor under its senior credit facility and, in the future, by each of its domestic subsidiaries that is a borrower under or guarantees obligations under certain material debt facilities or debt securities of the company or any guarantor.
Smithfield Foods intends to use the proceeds to repay existing debt under its senior credit facility and securitization facility and for general corporate purposes.
The meat processing company is based in Smithfield, Va.
| Issuer: | Smithfield Foods, Inc.
|
| Guarantors: | Certain company subsidiaries
|
| Amount: | $400 million
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| Description: | Senior notes
|
| Maturity: | Oct. 3, 2021
|
| Bookrunners: | BofA Merrill Lynch and Morgan Stanley & Co. LLC
|
| Coupon: | 2.65%
|
| Spread: | Treasuries plus 115 bps
|
| Trade date: | Sept. 28
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| Settlement date: | Oct. 3
|
| Ratings: | Moody’s: Ba2
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | Rule 144A, Regulation S
|
| Price talk: | Treasuries plus 120 bps area, plus or minus 2 bps
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