by Kim Souza (ksouza@talkbusiness.net)

Tyson Foods has renegotiated a credit line with JP Morgan Chase Bank that provides up to $2.25 billion in credit through September 2026. The deal requires Tyson to keep its gross earnings to consolidated interest expense ratio at 3.5 to 1 at the end of each fiscal quarter.

Tyson said it also used cash on hand to repay all outstanding obligations under the company’s existing term loan agreement, dated as of March 22, 2021, which was roughly $500 million, according to the filing Monday (Oct. 4) with the U.S. Securities and Exchange Commission.

The company is also continuing to settle the antitrust price fixing cases brought against it and most of the poultry industry five years ago. Tyson agreed last week to pay $42.5 million to settle price fixing charges brought by some of its customers. This case was filed in the Northern District of Illinois and also involved Pilgrim’s and Mar-Jac poultry who settled for $44 million and $5.99 million, respectively. Tyson Food did not respond to multiple requests for comments on the recent $42.5 million settlement.

https://talkbusiness.net/2021/10/tyson-foods-signs-2-25-billion-credit-agreement-settles-lawsuits/