Pilgrim's Pride gets required consents for Gold Kist's 10¼% notes

By Jennifer Chiou

New York, Oct. 16 - Pilgrim's Pride Corp. announced it received tenders from holders of 99% of Gold Kist's 10¼% senior notes due March 15, 2014 as of 5 p.m. ET on Oct. 13, the consent deadline.

Pilgrim's Pride received enough consents for amendments to some terms of the note indenture, including eliminating substantially all restrictive covenants and some events of default.

The tender offer expires at midnight ET on Oct. 27. The consent deadline was 5 p.m. ET on Oct. 13. The tender began on Sept. 29.

Based on an assumed payment date of Oct. 30, holders who have validly tendered with consents before the consent deadline will receive $1,154.77 for each $1,000 principal amount or notes. The payout includes a $30.00 consent payment.

Pricing was determined at 10 a.m. ET on Sept. 29, when the reference yield was 4.779%.

Payment in the tender offer is based on the bid-side price of the 2.625% U.S. Treasuries due March 15, 2009 on the price determination date plus 50 basis points.

Pilgrim's Pride will also pay accrued interest up to but excluding the payment date for the notes.

As previously announced, the offer is being conducted alongside the company's equity tender offer to purchase outstanding shares of Gold Kist for $20.00 each.

The tender is subject to Pilgrim's Pride receiving consents from holders of a majority of the notes and conditions related to its proposed acquisition of Gold Kist.

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

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