Pilgrim’s Pride entered into a credit agreement, effective May 8, 2017, for a new $750 million revolving credit facility and a term loan commitment of $800 million through a consortium of banks with Rabobank as administrative agent and collateral agent.
The new facility replaces the company’s existing $700 million revolving facility and $500 million term loan commitment. The proceeds of the loans under the new term loan commitment repaid outstanding revolving borrowings. The maturity date of the new facility will be May 6, 2022. As of March 26, 2017, the company had letters of credit of $42.7 million, $314.6 million outstanding revolving borrowings, and $500 million term loans outstanding under the replaced credit facility.
According to a related 8-K filing, Rabobank New York Branch, CoBank, ACB, BMO Capital Markets, ING Capital, Bank of America, Royal Bank of Canada, and Wells Fargo Securities served as joint bookrunners. Bank of America, Barclays, Deutsche Bank New York Branch, Wells Fargo Securities and Royal Bank of Canada were joint documentation agents.
Pilgrim’s employs approximately 41,900 people and operates chicken processing plants and prepared foods facilities in 14 states, Puerto Rico and Mexico.