Sanderson/Wayne plans new debt financing for acquisition, merger

By Sara Rosenberg

New York, Aug. 9 – Sanderson Farms Inc./Wayne Farms LLC plans on getting new debt financing to help fund the acquisition of Sanderson by Cargill and Continental Grain Co. and merger of Sanderson with Wayne Farms, a subsidiary of Continental Grain, according to an 8-K filed with the Securities and Exchange Commission on Monday.

BofA Securities Inc. and Cooperatieve Rabobank provided the debt commitment.

Other funds for the transaction will come from equity.

Under the agreement, Sanderson is being bought for $203 per share in cash, representing a total equity value of $4.53 billion.

Closing is expected by the end of 2021 or early 2022, subject to regulatory and Sanderson stockholder approval, and other customary conditions.

BofA Securities acted as the financial adviser to Cargill. Lazard acted as the financial adviser for Wayne Farms and Continental Grain. Centerview Partners LLC acted as financial adviser to Sanderson.

Sanderson is a Laurel, Miss.-based producer of fresh, frozen and minimally prepared chicken. Wayne Farms is an Oakwood, Ga.-based poultry producer.

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