Simpson Thacher represented the initial purchasers, led by J.P. Morgan Securities Inc., in connection with the issuance by Smithfield Foods, Inc. of $625 million aggregate principal amount of 10% senior secured notes due 2014, and a syndicate of lenders arranged by JPMorgan Securities Inc. in connection with the completion of a $1.0 billion asset-based (ABL) revolving credit facility. The senior secured notes and the ABL revolving credit facility are guaranteed by Smithfield’s U.S. subsidiaries.
Smithfield used the proceeds from the senior secured notes offering to repay borrowings under its U.S. revolving credit facility and to repay other indebtedness.
Smithfield is the world's largest pork processor and hog producer, with revenues exceeding $12 billion in fiscal 2009.
The Simpson Thacher team working on these transactions includes Art Robinson, Arjun Koshal, Ellen Smiley, Grenfel Calheiros, Carol Daniel, Brian Rosenzweig, Rosa Pizzi and Aleksander Janiszewski (Capital Markets), Patrick Ryan, Alexandra Kaplan, Anthony McMahon, Matthew Einbinder and Whitney Jordan (Credit), Erik Hepler (Collateral), Mardi Merjian and Heesun Kang (Real Estate), Jonathan Cantor and Jennifer Klein (Tax), Adeeb Fadil (Environmental), Julie Levy (Labor), Jeanne Annarumma, Susan Kaufman, Parker Kelsey and former associate Nisha Jain (Executive Compensation and Employee Benefits), Marcela Robledo and Jennifer Rackoff (Intellectual Property) and Andrew Pagliughi (FINRA and Blue Sky). Summer Associate Kelly Hodges and paralegals Corina Cristea, Mark Rapisarda, Mollie Braverman and Karla Johnson also provided valuable assistance.