Swift starts roadshow Friday for deal restructured as $250 million notes

By Paul A. Harris

St. Louis, Mo., Sept. 4 - Swift & Co. will return to the market with a restructured deal, a syndicate source told Prospect News.

The Greeley, Colo. company will now sell $250 million of senior notes due 2009, reduced from $400 million previously planned. It will hit the road Friday and pricing is expected on Sept. 13.

The deal, with expected ratings of B1/B+, continues to be via joint bookrunners Salomon Smith Barney and JP Morgan. The notes are non-callable for four years and contain an equity clawback of 35% for three years.

Originally announced as a $400 million, seven-year senior notes offering before being pulled off the road July 22 in the wake of ConAgra's beef recall, the deal is now structured to also include $150 million of 7.25-year senior subordinated notes that will be fully funded by ConAgra, with a six-month lock-up provision. The senior subordinated notes are non-callable for four years.

The financing also includes a $550 million credit facility led by Citibank and JPMorgan Chase.

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 and Booth Creek Management.

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