By Paul A. Harris
St. Louis, March 14 - S&C Holdco 3 Inc., the parent of Swift & Co., completed the private placement of $105 million of senior notes due March 11, 2010 to a group of qualified institutional buyers managed by Black Canyon Capital LLC and Canyon Capital Advisors LLC, the company said in a news release.
The unrated notes priced at 99.75 and will pay a coupon of 11% if paid in cash or 12% if paid in kind, according to a company source.
The notes are cash pay or PIK based on the company's performance, in accordance with the restricted payments covenants of the company's existing bonds.
Concurrently, Swift Foods Co. completed $75 million private offering of convertible senior subordinated notes due March 11, 2010 to the same group of institutional buyers.
Proceeds, together with currently available cash held by Swift Foods Co., will be used to fund a $178.36 million cash dividend to the holders Swift Foods Co. common shares.
The company is based in Greely, Colo.
| Issuer: | S&C Holdco 3 Inc. (parent of Swift & Co.)
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| Amount: | $105 million
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| Maturity: | March 11, 2010
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| Security description: | Senior cash or PIK notes
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| Coupon: | 11% per annum, if paid in cash, or 12% per annum, if paid in kind
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| Price: | 99.75
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| Call features: | Callable between months 1-18 at 102, months 19-36 at 105.6
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| Ratings: | Not rated
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