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Pilgrim's Announces Price of Senior Unsecured Notes

by 5m Editor
10 December 2010, at 8:19am

US - Pilgrim's Pride Corporation has announced that it has priced its private offering of $500 million aggregate principal amount of senior unsecured notes due 2018.

The $500 million aggregate principal amount of the Notes is an increase from the $350 million offering amount previously announced by Pilgrim's Pride. The Notes will bear interest at a rate of 7.875 per cent per year, payable semi-annually in arrears on 15 December and 15 June of each year, beginning on 15 June 2011.

The Notes will be issued at a price of 99.271 per cent of the face amount in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the 'Securities Act'). The Notes will be issued by Pilgrim's Pride and will be guaranteed on a senior unsecured basis by Pilgrim's Pride Corporation of West Virginia, Inc. and any other existing or future domestic subsidiary of Pilgrim's Pride that incurs or guarantees any other indebtedness (with limited exceptions). The offering is expected to close on 14 December 2010, subject to the satisfaction of closing conditions.

Pilgrim's Pride intends to use the net proceeds from the offering to repay borrowings under its existing term loan credit facilities and to pay fees and expenses incurred in connection with the offering.