PITTSBURG, Texas — Pilgrim’s Pride Corporation today announced that the
company and six of its subsidiaries have emerged from Chapter 11 bankruptcy
protection after a 13-month restructuring.
In connection with its emergence, the company has 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, 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% of its
common stock to JBS USA Holdings, Inc. in exchange for $800 million in cash. The
remaining 36% 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 will begin 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.
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.”
About Pilgrim’s Pride
Pilgrim’s Pride Corporation employs approximately 41,000 people and operates
chicken processing plants and prepared-foods facilities in 12 states, Puerto
Rico and Mexico. The Company’s primary distribution is through retailers and
foodservice distributors. For more information, please visit
http://www.pilgrimspride.com.
Forward-Looking Statements
Statements contained in this press release that state the intentions, plans,
hopes, beliefs, anticipations, expectations or predictions of the future of
Pilgrim’s Pride Corporation and its management are forward-looking statements.
It is important to note that the actual results could differ materially from
those projected in such forward-looking statements. Factors that could cause
actual results to differ materially from those projected in such forward-looking
statements include: matters affecting the poultry industry generally; the
ability to execute the company’s business plan to achieve desired cost savings
and profitability; future pricing for feed ingredients and the company’s
products; additional outbreaks of avian influenza or other diseases, either in
Pilgrim’s Pride’s flocks or elsewhere, affecting its ability to conduct its
operations and/or demand for its poultry products; contamination of Pilgrim’s
Pride’s products, which has previously and can in the future lead to product
liability claims and product recalls; exposure to risks related to product
liability, product recalls, property damage and injuries to persons, for which
insurance coverage is expensive, limited and potentially inadequate; management
of cash resources, particularly in light of Pilgrim’s Pride’s substantial
leverage; restrictions imposed by, and as a result of, Pilgrim’s Pride’s
substantial leverage; changes in laws or regulations affecting Pilgrim’s Pride’s
operations or the application thereof; new immigration legislation or increased
enforcement efforts in connection with existing immigration legislation that
cause the costs of doing business to increase, cause Pilgrim’s Pride to change
the way in which it does business, or otherwise disrupt its operations;
competitive factors and pricing pressures or the loss of one or more of
Pilgrim’s Pride’s largest customers; currency exchange rate fluctuations, trade
barriers, exchange controls, expropriation and other risks associated with
foreign operations; disruptions in international markets and distribution
channels; and the impact of uncertainties of litigation as well as other risks
described under “Risk Factors” in the Company’s Annual Report on Form 10-K and
subsequent filings with the Securities and Exchange Commission. Pilgrim’s Pride
Corporation undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information, future
events or otherwise.
Source:
Pilgrim’s Pride Corporation