Sanderson Farms, Inc. announced that its board of directors has approved an agreement, effective April 28, 2017, for a new US$900 million revolving credit facility through a consortium of banks.

The new facility replaces the company's existing US$750 million facility, which was terminated. The credit will remain unsecured, and certain covenants related to the company's financial condition and capital expenditure needs were adjusted in anticipation of Sanderson's planned expansion and other future growth initiatives.

The termination date of the new facility will be April 28, 2022. As of April 28, 2017, Sanderson had no outstanding borrowings under the former revolving credit facility, but the company had approximately US$19.7 million outstanding in letters of credit under that facility, which will remain outstanding under the new facility.

Joe. F. Sanderson, Jr., chairman and CEO of Sanderson Farms, Inc. stated: "We appreciate the continued support of our bank group and the confidence in our future demonstrated by this expanded credit facility. We look forward to the next stage of growth for Sanderson Farms, as we expect to begin construction of our new poultry complex in Texas during summer 2017. We are pleased that our financial position has allowed us to continue to grow our company and deliver greater value to our shareholders."

- Sanderson Farms