Pilgrim's Pride Launches €500M Senior Notes Offering to Fund Walkers Acquisition
PPC sits 20% above its 52-week low of $25.9.
Summary
Pilgrim's Pride and its UK subsidiary are launching a private offering of up to €500 million in senior notes. Proceeds will fund the recently announced £141.5 million Walkers Deli & Sausage acquisition and general corporate purposes. The offering is not conditioned on the Walkers deal closing, giving the company flexibility. This follows a weak Q2 where net income fell 96% and the U.S. segment swung to an operating loss, so the debt raise adds leverage at a challenging time. The notes are unregistered and offered only to qualified institutional buyers. Watch for final pricing and terms, which will determine the interest burden.
At the time of this announcement, PPC was trading at $31.01 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $7.3B. The 52-week trading range was $25.90 to $44.87. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.