Source:  Tom Johnston, MEATINGPLACE.COM, 6/25/09

Smithfield Foods Inc. said Thursday it is offering $500 million in senior secured notes and has begun arranging a new $1 billion asset-based credit facility.

The world's largest pork producer said it will use the proceeds from the notes, which are due 2014, to pay off debt and for other general corporate purposes.

Smithfield said the new credit facility will replace its existing revolving credit facility and will include an option, subject to certain conditions, to increase available commitments to $1.3 billion in the future.

Meantime, the company also is negotiating a new $200 million term loan expected to mature in August 2013 and to replace its existing $200 million term loan that matures in August 2011.

The notes, credit facility and term loan would be guaranteed by substantially all of Smithfield's U.S. subsidiaries, the company noted. The sale of the notes and closing of the new credit facility and new term loan are expected to be completed in early July 2009.

Shares of Smithfield were $13.19, up 15 cents, in morning trade Thursday on the New York Stock Exchange.

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