Tyson Foods Launches Senior Notes Offerings

(RTTNews) - Tyson Foods, Inc. (TSN) said Tuesday that it has commenced underwritten public offerings of senior notes.

The company said it plans to use the net proceeds from the offerings, together with cash on hand, the recently announced Class A common stock and tangible equity units offerings, each expected to be completed on August 5, and from borrowings under new term loans, to finance the previously announced $8.9 billion acquisition of The Hillshire Brands Co. (HSH) and to pay related fees and expenses.

Morgan Stanley and J.P. Morgan are acting as lead joint book-running managers for the offerings.

Moody's Investors Service on Monday confirmed the Baa3 ratings of Tyson Foods, and assigned Baa3 ratings to $5.75 billion of proposed senior unsecured guaranteed securities to be issued to partially fund the company's pending acquisition of Hillshire Brands.

Moody's said it anticipates that the financing to fund about $9.4 billion of acquisition costs, including fees and expenses, will consist of: proposed $2.5 billion of senior unsecured term loans; proposed $3.25 billion of senior unsecured notes; $840 million of Hillshire Brands senior unsecured rollover debt; $949 million of common stock; $1.5 billion of tangible equity units; and $314 million cash on hand.