Pilgrim’s Pride establishes new credit agreement

GREELEY — Pilgrim’s Pride Corp. (Nasdaq: PPC), with headquarters in Greeley, has entered into a new credit agreement. Terms of the new agreement consist of a $750 million revolving credit facility and a term loan commitment of $500 million.

Pilgrim’s used proceeds of the loans under the new term loan commitment, together with cash on hand, to repay the outstanding loans under the replaced credit facility.

An expansion feature is included in the new agreement that provides the company the opportunity to increase the whole facility for an additional $1.25 billion. The maturity date of the new agreement will be July 20, 2023.

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As of April 1, the company had $770 million term loans outstanding, no outstanding revolving borrowings and letters of credit of $44.8 million under the replaced credit agreement.

“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 chief executive officer. “We are also pleased that the transaction was substantially oversubscribed. With the availability of the U.S. credit agreement combined with facilities in the U.K. and Mexico, we have a solid capital structure and the ability to access global financial markets to pursue our strategic intent.”

Pilgrim’s employs approximately 51,300 people and operates chicken processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the U.K., and continental Europe.