Tyson Foods begins tender offer, consent solicitation for 10.5% notes

By Toni Weeks

San Diego, June 6 - Tyson Foods, Inc. has commenced a cash tender offer for any and all of the company's outstanding 10.5% senior notes due 2014 and a solicitation of consents to proposed amendments to the indenture governing the notes.

According to a press release, the proposed amendments would eliminate substantially all of the restrictive covenants as well as some events of default and related provisions.

Holders who validly tender their notes and deliver their consent before the offer expiration, 11:59 p.m. ET on June 12, will receive $1,166.25 for each $1,000 principal amount of notes.

Holders may not tender their notes without delivering consents or vice versa.

Settlement is expected June 13.

The tender offer is subject to the completion of an offering of senior notes. Tyson announced on Wednesday that it is planning to issue $750 million of new senior notes due 2022 that will not require payments or prepayments of principal before May 31, 2017.

The company also entered into an amendment to its credit agreement with JPMorgan Chase Bank, NA as administrative agent, which is contingent on Tyson completing the issuance of new notes. The amendment permits the prepayment or redemption of the 10.5% notes.

The tender and information agent is D.F. King & Co., Inc. (800 769-4414 or 212 269-5550 for banks and brokers). Barclays Capital Inc., Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets, LLC are the dealer managers and solicitation agents. Questions about the tender offer and consent solicitation may be directed to Barclays (800 438-3242 or 212 528-7581).

Springdale, Ark.-based Tyson is a meat protein and food production company.

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