The senior notes will be issued in one series of 5.250 percent senior notes due 2018 in an aggregate principal amount of $500 million and one series of 5.875 percent senior notes due 2021 in an aggregate principal amount of $400 million). Merger Sub is an indirect wholly-owned subsidiary of Shuanghui International.
The transaction is subject to customary closing conditions and is expected to close on July 31. Proceeds of the offering will be deposited into an escrow account. The funds will be used to partially fund Shuanghui's acquisition of Smithfield, at which time Merger Sub will merge with Smithfield. The merged company will be an indirect wholly-owned subsidiary of Shuanghui.
The buyout remains subject to approval by Smithfield's shareholders; the receipt of approval under certain specified other foreign merger clearance laws; review by The Committee on Foreign Investment in the United States and other customary closing conditions.
