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Tyson Announces Offerings of Stock and Notes

by 5m Editor
5 September 2008, at 1:19am

US - Tyson Foods Inc. has announced it intends to offer, subject to market and other conditions, 20 million shares of its Class A common stock in a registered underwritten public offering, as well as converible senior notes.

The company says it intends to grant the underwriters an option to purchase up to an additional 3 million shares of its Class A common stock to cover over-allotments, if any.

An entity controlled by Don Tyson, the Company's former Chairman and current director, has indicated it intends to purchase 3 million shares in the offering of Class A common stock.

Concurrently with the offering of Class A common stock, Tyson also intends to offer, subject to market and other conditions, $450 million aggregate principal amount of its convertible senior notes due 2013 in a registered underwritten public offering. Tyson intends to grant the underwriters an option to purchase up to an additional $67.5 million aggregate principal amount of such convertible notes to cover over-allotments, if any.

The Class A common stock offering and convertible notes offering are being conducted as separate public offerings and are not contingent upon each other.

Net proceeds from the offerings are expected to be used to repay portions of the outstanding borrowings under Tyson's accounts receivable credit facility and for other general corporate purposes such as acquisitions, strategic investments and initiatives to grow the Company's business.

View the full announcement from Tyson by clicking here.

Further Reading

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5m Editor