Springdale, AR -Tyson Foods, Inc. announced the issuance of $100 million of 6.08% MandatOry Par Put Remarketed Securities(SM) due February 1, 2010 (the "Fixed Rate MOPPRS(SM)") and $50 million of Floating Rate MandatOry Par Put Remarketed Securities(SM) due February 1, 2010 (the "Floating Rate MOPPRS(SM)") (collectively, the "MOPPRS"). The MOPPRS are subject to mandatory tender on February 1, 2000. Merrill Lynch & Co. was the underwriter for the transaction. The annual interest rate on the Fixed MOPPRS is 6.08% to February 1, 2000. Interest on the Floating Rate MOPPRS to February 1, 2000 is subject to quarterly adjustment and is a per annum rate equal to LIBOR plus .19%. If Merrill Lynch & Co., as remarketing dealer, elects to remarket the MOPPRS (except in limited circumstances), on and after February 1, 2000 the MOPPRS will bear interest at a rate determined in accordance with specified procedures. The MOPPRS will be sold to the public at varying prices relating to prevailing market prices at the time of resale to be determined by the underwriter at the time of each sale. The MOPPRS are rated A3 by Moody's and A- minus by Standard & Poor's Corporation.
The net proceeds from the offerings of the MOPPRS, along with the net proceeds of $150 million of 6% Notes due 2003 and $150 million of 7% Notes due 2028 the Company issued on January 21, 1998 in an underwritten public offering, will be used by the Company to repay a portion of the borrowings under its commercial paper program. On January 9, 1998, the Company borrowed approximately $318 million under that program, the proceeds of which were used to finance the $257.4 million cash portion of the recently completed Hudson Foods acquisition and to repay approximately $61 million under Hudson's revolving credit facilities.
Meat Industry Insights News Service
P.O. Box 553
Northport, NY 11768
Phone: 631-757-4010
Fax: 631-757-4060
E-mail: sflanagan@sprintmail.com
Web Site: http://www.spcnetwork.com/mii