US meat group Tyson Foods has emphasised its improved liquidity following recent capital restructuring moves.
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The group said that its restructuring secured “more than” US$1.7bn in liquidity, as of 28 March, ensuring financial flexibility and addressing more than $1.8bn in near-term debt maturities.
Speaking at the Barclays Capital Leveraged Finance Consumer Conference, Dennis Leatherby, Tyson’s executive vice president and CFO, said: “Tyson has a solid capital structure. We have strong liquidity and financial flexibility.”
In September, Tyson began capital restructuring by issuing 22.4m class A common shares and $458m in senior convertible notes. In March, the company successfully completed an $810m high yield bond offering and replaced its previous revolving credit facility with a $1bn asset-based lending facility.
“Despite volatile commodity markets, we have been disciplined in reducing our debt load,” Leatherby said. “Our net debt at the end of our second quarter was $2.6bn, compared to a high of nearly $5bn in 2001.”
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By GlobalDataTyson emphasised that its chicken, beef, pork and prepared foods segments are all profitable. Leatherby said the chicken segment has made “significant improvement” as a result of sales volume, product mix, shorter-term contracts with customers and operational efficiencies.
Leatherby also said Tyson’s chicken business will have a stronger third quarter than indicated on its 4 May earnings call.
