Poultry giantPilgrim's Pride Corporation, Pittsburg, Texas, said the company and six of its subsidiaries emerged from Chapter 11 bankruptcy protection after a 13-month restructuring.
In connection with its emergence, the company said it entered into a $1.75 billion exit credit facility with CoBank, ACB, as administrative agent and collateral agent; CoBank, Bank of Montreal and Rabobank International, as joint syndication agents; CoBank, Rabobank, Bank of Montreal, Barclays Capital, Morgan Stanley Senior Funding, Inc., and ING Capital LLC, as joint lead arrangers and joint bookrunners; and Barclays Bank PLC, Morgan Stanley Senior Funding, Inc., and ING Capital LLC, as joint documentation agents.
The exit credit facility is secured by substantially all of the company's assets. Under the terms of the company's plan of reorganization, all creditors of the company and its debtor subsidiaries holding allowed claims will be paid in full as soon as practicable. In the case of bondholders, payment will be made either through reinstatement of the bonds or in accordance with the holder's previous election of a cash-out option.
Under the terms of the confirmed plan, officials said that all of the shares of the company's common stock outstanding immediately prior to the effective date of the plan were cancelled and converted on a one-for-one basis into the right to receive new shares of the reorganized company. The reorganized company issued 64 percent of its common stock to JBS USA Holdings, Inc. in exchange for $800 million in cash. The remaining 36 percent of the common stock of the reorganized company was issued to stockholders existing immediately prior to the effective date. Proceeds from the sale of the common stock of reorganized Pilgrim's Pride to JBS are being used to fund cash distributions to unsecured creditors.
The reorganized company's common stock has begun trading tomorrow on the New York Stock Exchange under the symbol "PPC."
"Pilgrim's Pride today begins a new chapter as a market-driven company clearly focused on delivering the highest levels of service, selection and value to our customers as efficiently as possible," said Don Jackson, president and chief executive officer. "Over the past 13 months, we have made significant improvements across our organization aimed at positioning Pilgrim's Pride to respond quickly to the needs of the market.
"Those changes have touched every aspect of our business, from supply chain and operations to sales and marketing," he added. "Thanks to the commitment and support of our 41,000 employees and 4,500 growers, Pilgrim's Pride today is a stronger, leaner company with a growing customer base, improved capital structure and a culture built on results and accountability. We are very excited about the strategic opportunities available with JBS as our majority shareholder and we look forward to generating sustained, profitable growth in the future."
Pilgrim's Pride exits bankruptcy
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