Tyson ups bridge after Hillshire triumph

摘要

Tyson foods has increased its acquisition bridge loan to US$8.2bn from US$6.75bn after winning a bidding war to buy Hillshire Brands. Though the debt level has increased for Tyson, the company said in a presentation that it planned to maintain investment-grade ratings, and use the company's cashflows for quick deleveraging. Morgan Stanley and JP Morgan are leading the financing. The world's second largest meat processor prevailed over rival bidder Pilgrim's Pride, with an increased offer valuing the maker of Jimmy Dean sausages at US$8.55bn, including debt. Drawn pricing on the bridge loan opens at 150bp over Libor for BBB/Baa3 ratings with a 17.5bp commitment fee, which rises to 25bp if ratings fall below BBB-/Baa3.