Smithfield: New $1.2 billion credit line, extends $200m term loan
Smithfield Foods announced that it has entered into new revolving credit facilities totaling $1.2 billion with Rabobank Nederland, New York Branch, as administrative agent.
The new credit facilities replace the company's previous $1.0 billion revolving credit facility and include an option, subject to certain conditions, to increase available commitments to $1.5 billion in the future. The new credit facilities are comprised of a $925 million asset-based revolving credit facility and a $275 million accounts receivable securitization facility scheduled to mature in June 2016 and June 2014, respectively.
"Last year, we embarked on an aggressive plan to restructure our balance sheet. The refinancing of our working capital credit facility was a crucial step in achieving a number of the goals set forth in this plan; namely, to reduce interest expense and extend debt maturities, while ensuring ample liquidity," said C. Larry Pope, president and chief executive officer.
"We are pleased to have received overwhelming support from all of our existing lenders, in addition to several new banks who committed to these facilities. Rabobank played an instrumental role in the success of these facilities and we thank them for their efforts," he commented.
The company has also extended its $200 million term loan with Rabobank Nederland, which was previously scheduled to mature in August 2013, out to June 2016.
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