Delayed Swift LBO financing to be completed in September

By Paul A. Harris

St. Louis, Mo., Aug. 28 - ConAgra Foods Inc. said Wednesday that it expects Hicks, Muse, Tate & Furst Inc. and Booth Creek Management, Inc. to wrap up their financing and close the previously announced $1.4 billion acquisition of its Swift & Co. business during September.

However market and syndicate sources told Prospect News Wednesday that the deal's structure may have undergone changes as a result of ConAgra's mid-July voluntary recall of 18.6 million pounds of beef.

The bond deal that was roadshowing prior to the recall announcement was for $400 million of seven-year senior notes (B1/B+) via joint bookrunners Salomon Smith Barney and JP Morgan.

The financing also includes a $550 million secured credit facility (Ba2/BB) led by Citibank and JPMorgan Chase. Making up the bank debt is a $350 million revolver at Libor plus 325 basis points and a $200 million term B at Libor plus 300 basis points.

Proceeds will be used to fund the acquisition of 54% of ConAgra's US and Australian beef, pork and lamb operations by Hicks, Muse, Tate & Furst. The new company will be headquartered in Greeley, Colo.

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