Sanderson Farms gets $300 million revolver

By Sara Rosenberg

New York, May 2 - Sanderson Farms Inc. closed on a new $300 million five-year unsecured revolving credit facility, according to a an 8-K filed with the Securities and Exchange Commission Friday.

BMO Capital acted as the lead arranger, bookrunner and administrative agent on the deal that was completed on May 1. Regions Bank and AgFirst Farm Credit Bank are co-documentation agents, and U.S. Bank is syndication agent.

Pricing on the revolver is Libor plus 125 basis points to 200 bps, based on leverage.

At any time between Oct. 1, 2009 and Jan. 1, 2010, the company may request a one-year extension of the facility and may request further extensions each year thereafter.

Covenants include minimum tangible net worth, maximum leverage ratio, minimum current ratio and limitations on capital expenditures.

Proceeds were used to refinance the company's existing revolver.

Sanderson Farms is a Laurel, Miss., poultry processing company.

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