Sanderson Farms, Inc. Announces New Credit Agreement
LAUREL, Miss. -- October 24, 2013
Sanderson Farms, Inc. (NASDAQ:SAFM) today announced that its existing
revolving credit facility through a consortium of banks has been increased
from $500 million to $600 million. The credit remains unsecured and certain
covenants related to the Company’s financial condition and capital expenditure
needs have been amended in anticipation of the Company’s future growth plans.
In addition, the termination date has been extended to October 24, 2018,
unless otherwise extended. As of October 24, 2013, the Company had no
outstanding borrowings under the then existing revolving credit facility, but
the Company did have approximately $11.0 million outstanding letters of credit
under the credit facility.
Commenting on the announcement, 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 growth plan
for the next five years, including the construction of our new poultry complex
in Palestine, Texas. We appreciate the support of our bank group and we
believe the amended terms and covenants reflect their confidence in the future
of Sanderson Farms.”
Sanderson Farms, Inc. is engaged in the production, processing, marketing and
distributionof fresh and frozen chicken and other prepared food items. Its
shares trade on the NASDAQ GlobalSelect 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 Form10-K for the year ended October 31,2012, and its subsequent
Quarterly Reports on Form 10-Q filed with the SEC, 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
(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 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.
Readers are cautioned not to place undue reliance on forward-looking
statements made by or on behalf of Sanderson Farms. 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. Most of the factors described
above cannot be controlled by the Company. When used in this press release,
the words “believes,” “estimates,” “plans,” “expects,” “should,” “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 (but are not limited to) statements of the
Company’s belief about future earnings, expansion plans, sales, production,
and expenses, including feed grain costs.
Sanderson Farms, Inc.
Mike Cockrell, 601-649-4030
Treasurer & Chief Financial Officer
Press spacebar to pause and continue. Press esc to stop.