Pilgrim’s Pride amended its credit facility to consist of a $750 million revolving credit facility and a term loan commitment of $500 million.
According to a related 8-K filing, CoBank served as administrative agent and collateral agent on the facility.
The company will use the proceeds of the new term loan, together with cash on hand, to repay outstanding loans under the credit facility it is replacing. An expansion feature was included in the new agreement that allows the company to increase the whole facility by an additional $1.25 billion.
The maturity date of the new agreement is July 20, 2023. As of April 1, 2018, the company had $770 million term loans outstanding, no outstanding revolving borrowings and letters of credit of $44.8 million under the replaced credit facility.
“We are very pleased with the new credit agreement. We believe due to the company’s solid financial performance, strong cash flow generation, and robust support from our lending partners, we had the opportunity to renew our existing credit facility with attractive terms and extend the maturity to 2023,” said Bill Lovette, the company’s president and CEO.
Pilgrim’s employs approximately 51,300 people and operates chicken processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the UK and continental Europe.