041152 Smithfield Plans $150 Million Debt Offering

Smithfield, VA - Smithfield Foods Inc., the parent company of Cudahy-based pork processor Patrick Cudahy Inc., is planning a private offering of $150 million in debt. The Smithfield, Va.-based meat processor plans to use proceeds of the senior unsecured notes due 2011 to pay down debt under its U.S. revolving credit agreement. The move will allow Smithfield to use the available credit under the agreement, along with internal funds, for capital expenses and general corporate purposes, including expansion of its processed meat business, strategic acquisitions and further investment in joint ventures.

Separately, Smithfield said it expects to report net income for the fiscal second quarter of 50 cents to 52 cents per share, compared with 29 cents per share reported for the same period a year ago. Smithfield said hog production earnings rose sharply on a 30% increase in live hog prices in the quarter compared with last year.

With annual sales of about $10 billion, Smithfield is the nation's largest processor and marketer of fresh pork and processed meats, and the largest hog producer in the United States.

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