Tyson Foods Inc., the largest U.S. meat processor, obtained a $1 billion, five-year line of credit.
JPMorgan Chase & Co. led the transaction, which will reduce the Springdale-based company’s interest expense by $1.1 million, the company said Monday in a statement distributed by Globe Newswire.
“Our ability to establish this new credit facility is reflective of Tyson’s recent return to investment grade status with all three ratings agencies,” Dennis Leatherby, executive vice president and chief financial officer said in the statement. “It’s another positive step in our ongoing efforts to maintain a strong balance sheet.”
Fitch Ratings grades Tyson BBB, reflecting low financial leverage, or debt to earnings before interest, taxes, depreciation and amortization, and good liquidity, it said in a June 6 report.
Gary Mickelson, a spokesman for Tyson, didn’t immediately reply to an e-mail seeking comment.
In a revolving credit line, money can be borrowed again once it is repaid.