February 14, 2011

Smithfield ends debt offer, announces results

Smithfield Foods Inc. said that it terminated its former announcement offer to purchase the greatest aggregate key amount of the company's 7.75% senior unprotected notes due 2013 and 10% senior secured notes due 2014 that it can acquire for US$450 million.

The world's largest pork producer said it accepted US$390.9 million aggregate principal amount of notes for purchase in the tender offer.

The aggregate consideration for notes accepted in the offer, including accrued interest, was about US$455.90 million. Smithfield expects the premium paid in the purchase of the notes, between US$71 million to US$73 million, will be charged to earnings in the company's fiscal fourth quarter.

Goldman, Sachs & Co. acted as the dealer manager, and Global Bondholder Services Corp. was the information agent and depository for the offer.