Smithfield Foods secures $600 million delayed-draw term loan facility
SFD•Smithfield Foods signed a $600 million senior unsecured delayed-draw term loan agreement on October 14, 2026. It expects to use the proceeds to redeem all outstanding 4.25% Senior Notes due 2027 on or after November 1, 2026.
1. Loan terms
The facility allows one drawing through December 23, 2026, and matures three years after funding. Bank of America is the administrative agent. Borrowings carry SOFR spreads of 0.88% to 1.38%, or base-rate spreads of 0% to 0.38%, depending on Smithfield’s debt ratings.
2. Financial covenants
The agreement requires debt-to-capitalization of no more than 50%, temporarily rising to 55% for a Material Acquisition, and minimum interest coverage of 3.5 times.
