Sanderson Farms, Inc. (NASDAQ: SAFM) today announced that
its Board of Directors has approved an agreement, effective
March 21, 2019, for a new $1.0 billion revolving credit facility
through a consortium of banks. The new facility replaces the
Company’s existing $900 million facility, which was terminated. The
credit will remain unsecured, and certain covenants related to the
Company’s financial condition were adjusted and the limitation on
capital expenditures was eliminated to support the Company’s future
growth. The termination date of the new facility will be March 21,
2024. As of March 21, 2019, the Company had $100.0 million in
outstanding borrowings and approximately $25.3 million outstanding
in letters of credit under the former revolving credit facility,
all of which will remain outstanding under the new facility.
Joe. F. Sanderson, Jr., chairman and chief executive officer of
Sanderson Farms, Inc. stated, “We are pleased to make these
amendments to our credit facility to support our strategic
initiatives and continue to deliver greater value to our
shareholders. We appreciate the continued support of our bank group
and their confidence in the future of Sanderson Farms.”
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 Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, 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, 2018, 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, any 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 net realizable 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 net
realizable value 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 the Company’s operations, or changes in
global weather patterns that could affect the supply and price of
feed grains.
(12) Failure to respond to changing consumer preferences and
negative or competitive media campaigns.
(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 or in
the related conference call, 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 growth plans, future earnings, production
levels, capital expenditures, grain prices, global economic
conditions, supply and demand factors and other industry
conditions.
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version on businesswire.com: https://www.businesswire.com/news/home/20190321005758/en/
Mike CockrellTreasurer & Chief Financial
Officer(601) 649-4030
Sanderson Farms (NASDAQ:SAFM)
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