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Pilgrim's Pride accepts tenders for all of Gold Kist's 10¼% notes
By Laura Lutz
Des Moines, Dec. 28 - Pilgrim's Pride Corp. accepted tenders for 100% of Gold Kist Inc.'s 10¼% senior notes due 2014.
The company's previously announced tender offer and consent solicitation for the notes ended at 5 p.m. ET on Dec. 27.
The company will pay $1,152.41 per $1,000 principal amount of the notes on Jan. 2, the payment date.
The tender consideration was earlier raised twice as the payment date was delayed, from $1,153.29 and $1,154.77 per $1,000 principal amount of notes. The payment date was extended from Nov. 29 and Oct. 27.
The final tender consideration was determined at 10 a.m. ET on Dec. 11 based on the bid-side price of the 2.625% U.S. Treasuries due March 15, 2009 plus 50 basis points. The reference yield was 4.571%. The reference yield on Sept. 29, the original pricing date, was 4.779%.
The tender consideration includes a $30.00 consent payment for noteholders who tendered before the Oct. 13 consent solicitation expiration.
Pilgrim's Pride will also pay accrued interest up to but excluding the payment date for the notes.
The tender offer, which began on Sept. 29, was being conducted in connection with the company's equity tender offer to purchase outstanding shares of Gold Kist for $20.00 each.
The tender offer is subject to conditions related to the company's proposed acquisition of Gold Kist.
Lehman Brothers Inc. (800 438-3242 or 212 528-7581) is dealer manager for the offer, Innisfree M&A Inc. (877 687-1874) is the information agent and Mellon Investor Services LLC is the depository.
As of Dec. 11, the company had received tenders and consents from holders of 99.9% of the notes, enough to amend the note indenture to eliminate substantially all restrictive covenants and some events of default.
Pilgrim's Pride is a Pittsburg, Texas-based chicken producer. Gold Kist is an Atlanta-based integrated broiler company.
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