Sanderson Farms, Inc. (NASDAQ: SAFM) today announced that
its Board of Directors has approved an agreement, effective
April 28, 2017, for a new $900 million revolving credit facility
through a consortium of banks. The new facility replaces the
Company’s existing $750 million facility, which was terminated. The
credit will remain unsecured, and certain covenants related to the
Company’s financial condition and capital expenditure needs were
adjusted in anticipation of the Company’s planned expansion and
other future growth initiatives. The termination date of the new
facility will be April 28, 2022. As of April 28, 2017, the Company
had no outstanding borrowings under the former revolving credit
facility, but the Company had approximately $19.7 million
outstanding in letters of credit under that facility, which will
remain outstanding under the new facility.
Joe. F. Sanderson, Jr., chairman and chief executive officer of
Sanderson Farms, Inc. stated, “We appreciate the continued support
of our bank group and the confidence in our future demonstrated by
this expanded credit facility. We look forward to the next stage of
growth for Sanderson Farms, as we expect to begin construction of
our new poultry complex in Texas during summer 2017. We are pleased
that our financial position has allowed us to continue to grow our
Company and deliver greater value to our shareholders.”
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.
This press release includes forward-looking statements within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995, as amended.
Forward-looking statements are based on a number of assumptions
about future events and are subject to various risks, uncertainties
and other factors that may cause actual results to differ
materially from the views, beliefs, projections and estimates
expressed in such statements. These risks, uncertainties and
other factors include, but are not limited to those discussed
under “Risk Factors” in the Company’s Annual Report on
Form 10-K for the year ended October 31, 2016, and the
following:
(1) Changes in the market price for the Company’s finished
products and feed grains, both of which may fluctuate
substantially and exhibit cyclical characteristics typically
associated with commodity markets.
(2) Changes in economic and business conditions, monetary and
fiscal policies or the amount of growth, stagnation or recession in
the global or U.S. economies, either of which may affect the value
of inventories, the collectability of accounts receivable or the
financial integrity of customers, and the ability of the end
user or consumer to afford protein.
(3) Changes in the political or economic climate, trade
policies, laws and regulations or the domestic poultry
industry of countries to which the Company or other companies in
the poultry industry ship product, and other changes that might
limit the Company’s or the industry’s access to foreign
markets.
(4) Changes in laws, regulations, and other activities in
government agencies and similar organizations applicable to the
Company and the poultry industry and changes in laws, regulations
and other activities in government agencies and similar
organizations related to food safety.
(5) Various inventory risks due to changes in market conditions
including, but not limited to, the risk that market values of live
and processed poultry inventories might be lower than the cost of
such inventories, requiring a downward adjustment to record the
value of such inventories at the lower of cost or market as
required by generally accepted accounting principles.
(6) Changes in and effects of competition, which is significant
in all markets in which the Company competes, and the effectiveness
of marketing and advertising programs. The Company competes with
regional and national firms, some of which have greater financial
and marketing resources than the Company.
(7) Changes in accounting policies and practices adopted
voluntarily by the Company or required to be adopted by
accounting principles generally accepted in the United States.
(8) Disease outbreaks affecting the production, performance
and/or marketability of the Company’s poultry products, or the
contamination of its products.
(9) Changes in the availability and cost of labor and
growers.
(10) The loss of any of the Company’s major customers.
(11) Inclement weather that could hurt Company flocks or
otherwise adversely affect its operations, or changes in global
weather patterns that could impact the supply of feed grains.
(12) Failure to respond to changing consumer preferences.
(13) Failure to successfully and efficiently start up and run a
new plant or integrate any business the Company might
acquire.
(14) Unfavorable results from currently pending litigation and
proceedings, or litigation and proceedings that could arise in the
future.
Readers are cautioned not to place undue reliance on
forward-looking statements made by or on behalf of the
Company. Each such statement speaks only as of the day it was made.
The Company undertakes no obligation to update or to revise any
forward-looking statements. The factors described above cannot
be controlled by the Company. When used in this press
release, the words “believes,” “estimates,” “plans,”
“expects,” “should,” “could,” “outlook,” and “anticipates” and
similar expressions as they relate to the Company or its
management are intended to identify forward-looking
statements. Examples of forward-looking statements include
statements of the Company’s belief about future earnings,
grain prices, supply and demand factors, growth plans, production
capacity and other industry conditions.
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version on businesswire.com: http://www.businesswire.com/news/home/20170428005733/en/
Sanderson Farms, Inc.Mike Cockrell,
601-649-4030Treasurer & Chief Financial Officer
Sanderson Farms (NASDAQ:SAFM)
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