Tyson Foods Inc. has entered into a $1 billion senior secured credit facility with JPMorgan Chase Bank N.A., as administrative agent. The new credit facility is secured by the company’s cash, accounts receivable and inventory and is guaranteed by substantially all of the company’s domestic subsidiaries, according to Tyson.

The new credit facility replaces the company’s previous revolving one for which the company and certain of its material subsidiaries pledged substantially all their assets as collateral. The new credit facility is scheduled to mature, and the commitments thereunder will terminate, on March 9, 2012, said the company in a press release.

Tyson also has closed its previously announced offering of $810 million aggregate principal amount of 10.50% senior notes due 2014. Tyson said it intends to use the proceeds from the note offering to repay borrowings and terminate commitments under its accounts receivables facility, repay and/or refinance other indebtedness and for other general corporate purposes.

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The new credit facility and notes offering were both initiated as part of Tyson’s ongoing debt management efforts.

"Given the current financial market, we believed it was prudent for us to proceed with these measures now," said Dennis Leatherby, executive vice president and CFO for Tyson Foods. "The offering and new credit facility provide Tyson with continued financial flexibility, giving us the option of paying off some existing debt early as well as funds for future financing needs."