Sanderson Farms, Inc. announced March 21 that its board of directors has approved an agreement, effective the same day, for a new $1.0 billion revolving credit facility through a consortium of banks. The new facility replaces the company’s existing $900 million facility, which was terminated. The credit will remain unsecured, and certain covenants related to the company’s financial condition were adjusted and the limitation on capital expenditures was eliminated to support the company’s future growth. The termination date of the new facility will be March 21, 2024. As of March 21, the company had $100.0 million in outstanding borrowings and approximately $25.3 million outstanding in letters of credit under the former revolving credit facility, all of which will remain outstanding under the new facility.
Joe. F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc. stated, “We are pleased to make these amendments to our credit facility to support our strategic initiatives and continue to deliver greater value to our shareholders. We appreciate the continued support of our bank group and their confidence in the future of Sanderson Farms.”
Sanderson Farms, Inc. is engaged in the production, processing, marketing and distribution of fresh, frozen and minimally prepared chicken. Its shares trade on the NASDAQ Global Select Market under the symbol SAFM.