Pilgrim's Pride amends and restates U.S. credit agreement via CoBank

By Toni Weeks

San Luis Obispo, Calif., Aug. 1 - Pilgrim's Pride Corp. amended and restated its U.S. credit agreement on Aug. 1 with CoBank, ACB as administrative agent and collateral agent, according to a 10-Q filing with the Securities and Exchange Commission.

The facility will provide for a $700 million revolving credit facility and the continuation of the company's existing term B facility.

Pricing on both tranches was reduced to Libor plus 225 basis points through Dec. 31. After that, the margin may range from 175 bps to 375 bps depending on the company's net senior leverage ratio.

The amendment also eliminated the fixed-charge coverage ratio and senior secured leverage ratio financial covenants.

After May 1, 2014, the company may borrow under a multiple draw delayed-draw term loan commitment of up to $400 million. It may request an increase in the revolving loan commitment of up to $250 million and the delayed-draw term loan commitment by up $500 million, subject to lenders' agreement.

The revolver and delayed-draw term loans will mature in five years. The term B facility will mature on Dec. 31, 2014.

The pricing of the term B2 loans under the amended credit facility will remain unchanged.

Borrowings will continue to be secured by substantially all of the assets of the company and its non-Mexico subsidiaries.

Based in Greeley, Colo., Pilgrim's Pride is a poultry processor.

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