Smithfield Foods starts Dutch auction tender for 7¾% notes, 10% notes

By Jennifer Chiou

New York, Jan. 12 - Smithfield Foods, Inc. announced the start of Dutch auction cash tender offer for up to $350 million total of its $350 million of 7¾% senior unsecured notes due 2013 and its $850 million of 10% senior secured notes due 2014.

For each $1,000 principal amount, the acceptable bid price range is $1,075 to $1,110 for the 7¾% notes and $1,155 to $1,190 for the 10% notes.

The ranges include an early participation payment of $30.00 for those who tender prior to 5 p.m. ET on Jan. 26.

The offer is set to end at midnight ET on Feb. 9.

The company said that the clearing premium for the offer will be the lowest single bid premium to allow it to purchase the maximum aggregate principal amount of notes.

Smithfield said it will also pay accrued interest to the payment date.

Goldman Sachs & Co. is the dealer manager (800 828-3182 or call collect 212 902-5128). Global Bondholder Services Corp. is the depositary and information agent (866 924-2200).

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

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