Smithfield Foods, Inc. entered into a Senior Unsecured Delayed Draw Term Loan Credit Agreement on October 14, 2026. The agreement provides for aggregate delayed draw term loan commitments of $600 million on a senior unsecured basis. The facility is available to be drawn in a single drawing by the Company until December 23, 2026, and matures three years from the date the loan is funded.
Bank of America, N.A. has been appointed as the administrative agent, with the arrangers, bookrunners, and other agents. The Company intends to use the proceeds for working capital and general corporate purposes. Specifically, the Company expects to redeem all outstanding 4.250% Senior Notes due 2027, with a redemption price of 100.000% of the principal amount plus accrued and unpaid interest, on or after November 1, 2026.
The loan interest rate is determined based on the Company’s senior, unsecured long-term debt ratings from S&P, Moody’s, and Fitch. The applicable spread for Term SOFR or Daily SOFR ranges from 0.875% to 1.375%, depending on the rating tier. The agreement includes customary covenants, including a maximum debt to capitalization ratio of 50.0% (increasable to 55.0% following a Material Acquisition) and a consolidated interest expense coverage ratio of at least 3.50 to 1.00.
The facility also contains standard events of default, such as non-payment of debt obligations, covenant violations, bankruptcy, and change of control.
