New Issue: Tyson Foods prices $3.25 billion of senior notes in four tranches

By Aleesia Forni

Virginia Beach, Aug. 5 – Tyson Foods Inc. priced $3.25 billion of senior notes (Baa3/BBB/BBB) in four parts on Tuesday, according to a market source and an FWP filed with the Securities and Exchange Commission.

The company priced $1 billion of 2.65% senior notes due 2019 at 99.934 to yield 2.664%, or Treasuries plus 100 basis points.

Joint bookrunners for the five-year notes were J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, HSBC Securities (USA) Inc. and Mizuho Securities USA Inc.

There was also $1.25 billion of 3.95% 10-year notes priced with a spread of Treasuries plus 150 bps. The notes sold at 99.696 to yield 3.987%.

Joint bookrunners for the 10-year notes were JPMorgan, Morgan Stanley, Rabo Securities USA, Inc. and U.S. Bancorp Investments Inc.

A third tranche was $500 million of 4.875% 20-year bonds sold at 99.986 to yield 4.876%, or Treasuries plus 160 bps.

Joint bookrunners for the 20-year bonds were JPMorgan, Morgan Stanley, HSBC Securities and Mizuho Securities.

Finally, $500 million of 5.15% bonds due 2044 priced with a spread of Treasuries plus 190 bps. Pricing was at 99.605 to yield 5.176%.

Morgan Stanley, JPMorgan, Rabo Securities and U.S. Bancorp were the bookrunners.

Proceeds will be used to fund the acquisition of Hillshire Brands Co. and to pay related fees and expenses.

The meat and food production company is based in Springdale, Ark.

Issuer:	Tyson Foods Inc.
Guarantor:	Tyson Fresh Meats Inc.
Issue:	Senior notes
Amount:	$3.25 billion
Trade date:	Aug. 5
Settlement date:	Aug. 8
Ratings:	Moody’s: Baa3
	Standard & Poor’s: BBB
	Fitch: BBB
Distribution:	SEC registered
Five-year notes
Amount:	$1 billion
Maturity:	Aug. 15, 2019
Joint bookrunners:	J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, HSBC Securities (USA) Inc., Mizuho Securities USA Inc.
Co-managers:	RBC Capital Markets, LLC, Rabo Securities USA, Inc., U.S. Bancorp Investments, Inc., Credit Agricole Securities (USA) Inc., MUFG
Coupon:	2.65%
Price:	99.934
Yield:	2.664%
Spread:	Treasuries plus 100 bps
Price guidance:	Treasuries plus 120 bps area
Make-whole call:	Treasuries plus 15 bps prior to July 15, 2019, then callable at par
10-year notes
Amount:	$1.25 billion
Maturity:	Aug. 15, 2024
Joint bookrunners:	JPMorgan, Morgan Stanley, Rabo Securities, U.S. Bancorp
Co-managers:	RBC Capital Markets, HSBC Securities, Mizuho Securities, Credit Agricole Securities, MUFG
Coupon:	3.95%
Price:	99.696
Yield:	3.987%
Spread:	Treasuries plus 150 bps
Price guidance:	Treasuries plus 165 bps to 170 bps
Make-whole call:	Treasuries plus 5 bps prior to May 15, 2024, then callable at par
20-year bonds
Amount:	$500 million
Maturity:	Aug. 15, 2034
Joint bookrunners:	JPMorgan, Morgan Stanley, HSBC Securities, Mizuho Securities
Co-managers:	RBC Capital Markets, Rabo Securities, U.S. Bancorp, Credit Agricole Securities, MUFG
Coupon:	4.875%
Price:	99.986
Yield:	4.876%
Spread:	Treasuries plus 160 bps
Price guidance:	Treasuries plus 170 bps area
Make-whole call:	Treasuries plus 25 bps prior to Feb. 15, 2034, then callable at par
30-year bonds
Amount:	$500 million
Maturity:	Aug. 15, 2044
Joint bookrunners:	Morgan Stanley, JPMorgan, Rabo Securities, U.S. Bancorp
Co-managers:	RBC Capital Markets, HSBC Securities, Mizuho Securities, Credit Agricole Securities, MUFG,
Coupon:	5.15%
Price:	99.605
Yield:	5.176%
Spread:	Treasuries plus 190 bps
Price guidance:	Treasuries plus low-200 bps area
Make-whole call:	Treasuries plus 30 bps prior to Feb. 15, 2044, then callable at par

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