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Source: Janie Gabbett, MEATINGPLACE.COM, 9/15/08
Tyson Foods renegotiated a $1 billion five-year revolving credit agreement, providing additional guarantees and pledging some assets to secure its performance under the agreement, the company said in a filing with the Securities and Exchange Commission.
The move, made on Sept. 10, came less than a week after Standard and Poor's lowered its corporate credit ratings on the company and its subsidiary Tyson Fresh Meats Inc., to 'BB' from 'BBB-'.
Based on Tyson's action, Fitch Ratings Inc. on Friday upgraded the company's debt rating to 'BBB-' noting that, "in addition to providing collateral and further guarantees, the amendment gives Tyson extra cushion under its maximum leverage covenant."
Fitch said the additional guarantees will come primarily from the company's poultry and prepared foods business and pledges inventory and trademarks owned by Tyson and its subsidiaries.
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