Pilgrim's Pride prices new tender consideration for Gold Kist's 10¼% notes

By Angela McDaniels

Seattle, Nov. 13 - Pilgrim's Pride Corp. said it will pay $1,153.29 per $1,000 principal amount of Gold Kist Inc.'s 10¼% senior notes due 2014 tendered.

The company revised the tender consideration after extending the tender expiration to 5 p.m. ET on Nov. 29 from Oct. 27. It had planned to pay $1,154.77 per $1,000 principal amount of notes.

The new tender consideration was determined at 10 a.m. ET on Nov. 13 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 4.686%. 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, which is expected to be Dec. 2.

The tender offer, which began on Sept. 29, is being conducted in connection with the company's equity tender offer to purchase outstanding shares of Gold Kist for $20.00 each.

The tender is subject to conditions related to the company's proposed acquisition of Gold Kist. On Oct. 17, Pilgrim's Pride announced that the Antitrust Division of the Department of Justice granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in connection with its tender offer for the outstanding shares of Gold Kist.

Lehman Brothers Inc. (800 438-3242 collect 212 528-7581) is dealer manager for the offer. Innisfree M&A Inc. (877 687-1874) is the information agent.

Pilgrim's Pride received tenders and consents from holders of 99% of the notes by the consent deadline, 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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