Tyson gets $4.5 billion bridge financing for AdvancePierre acquisition

By Devika Patel

Knoxville, Tenn., April 25 – Tyson Foods Inc. and AdvancePierre Foods Holdings, Inc. announced that they have entered into a definitive merger agreement under which a subsidiary of Tyson will launch a tender offer to acquire all of AdvancePierre’s common shares for $40.25 per share in cash.

Tyson said in a press release that it has secured committed bridge financing from Morgan Stanley Senior Funding, Inc. to complete the transaction and retire AdvancePierre’s debt.

“We’re going to borrow about $4.5 billion in debt in the neighborhood of 3.5%,” executive vice president and chief financial officer Dennis Leatherby said on the company’s conference call announcing the tender on Tuesday.

Despite taking on the debt, the company intends to de-lever quickly.

“We intend to use our strong cash flows to rapidly pay down debt and return to our leverage within our target range,” president, chief executive officer and director Thomas P. Hayes said on the call.

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

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