Tyson inks $2.25 billion revolver at Libor plus 80.5 bps-120 bps

Chicago, Oct. 4 – Tyson Foods, Inc. signed a new $2.25 billion revolving credit agreement with JPMorgan Chase Bank, NA as administrative agent on Thursday, according to an 8-K filed with the Securities and Exchange Commission.

The new facility refinances and replaces the company’s existing facility with JPMorgan from March 14, 2018.

The new facility matures Sept. 30, 2026, subject to two one-year extension options.

Based on ratings, interest will start at Libor plus 80.5 basis points with a maximum rate at the fifth level of Libor plus 120 bps.

The facility fee, also based on ratings, starts at 7 bps and goes up to 17.5 bps.

There are Libor transition provisions in the documentation.

The agreement limits the minimum interest expense coverage ratio to at least 3.5x at the end of each fiscal quarter.

In other bank loan news, Tyson used cash on Thursday to repay all outstanding obligations under the company’s existing term loan agreement from March 22, 2021 and terminate the agreement. There was $500 million outstanding on the loan.

JPMorgan Chase Bank, NA, Barclays, BofA Securities, Inc., Morgan Stanley Senior Funding, Inc., Cobank, ACB, Cooperatieve Rabobank UA, New York Branch and RBC Capital Markets are the joint lead arrangers and joint bookrunners.

Bank of America, NA, Barclays and Morgan Stanley Senior Funding, Inc. are the syndication agents.

Cobank, ACB, Cooperatieve Rabobank UA, New York Branch and Royal Bank of Canada are the documentation agents.

Tyson Foods is a Springdale, Ark., meat and food production company.

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