SMITHFIELD, Va., June 10, 2011 (GLOBE NEWSWIRE) -- Smithfield Foods, Inc. (NYSE:SFD) announced today that it has entered into new revolving credit facilities totaling $1.2 billion with Rabobank Nederland, New York Branch, as administrative agent. The new credit facilities replace the company's previous $1.0 billion revolving credit facility and include an option, subject to certain conditions, to increase available commitments to $1.5 billion in the future. The new credit facilities are comprised of a $925 million asset-based revolving credit facility and a $275 million accounts receivable securitization facility scheduled to mature in June 2016 and June 2014, respectively.
"Last year, we embarked on an aggressive plan to restructure our balance sheet. The refinancing of our working capital credit facility was a crucial step in achieving a number of the goals set forth in this plan; namely, to reduce interest expense and extend debt maturities, while ensuring ample liquidity," said C. Larry Pope, president and chief executive officer.
"We are pleased to have received overwhelming support from all of our existing lenders, in addition to several new banks who committed to these facilities. Rabobank played an instrumental role in the success of these facilities and we thank them for their efforts," he commented.
The company has also extended its $200 million term loan with Rabobank Nederland, which was previously scheduled to mature in August 2013, out to June 2016.
About Smithfield Foods
Smithfield Foods is a $12 billion global food company and the world's largest pork processor and hog producer. In the United States, the company is also the leader in numerous packaged meats categories with popular brands including Smithfield®, John Morrell® and Farmland®. Smithfield Foods is committed to providing good food in a responsible way and maintains robust environmental, food safety, employee safety, animal welfare and community involvement programs. For more information, visit .
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This news release contains "forward-looking" statements within the meaning of the federal securities laws. The forward-looking statements include statements concerning our outlook for the future, as well as other statements of beliefs, future plans and strategies or anticipated events, and similar expressions concerning matters that are not historical facts. Our forward-looking information and statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, the statements. These risks and uncertainties include the availability and prices of live hogs, raw materials, fuel and supplies, food safety, livestock disease, live hog production costs, product pricing, the competitive environment and related market conditions, risks associated with our indebtedness, including cost increases due to rising interest rates or changes in debt ratings or outlook, hedging risk, operating efficiencies, changes in foreign currency exchange rates, access to capital, the cost of compliance with and changes to regulations and laws, including changes in accounting standards, tax laws, environmental laws, agricultural laws and occupational, health and safety laws, adverse results from on-going litigation, actions of domestic and foreign governments, labor relations issues, credit exposure to large customers, the ability to make effective acquisitions and successfully integrate newly acquired businesses into existing operations, our ability to effectively restructure portions of our operations and achieve cost savings from such restructurings and other risks and uncertainties described in our Annual Report on Form 10-K for fiscal 2010 and our Quarterly Report on Form 10-Q for the fiscal quarter ended August 1, 2010. Readers are cautioned not to place undue reliance on forward-looking statements because actual results may differ materially from those expressed in, or implied by, the statements. Any forward-looking statements that we make speak only as of the date of such statements, and we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.
CONTACT: Keira Lombardo Smithfield Foods, Inc. (757) 365-3050 firstname.lastname@example.org