Pilgrim's Pride granted another credit waiver
October 27, 2008
by Keith Nunes
PITTSBURG, TEXAS — Pilgrim’s Pride Corp. has reached another agreement with its lenders to extend the temporary waiver under its credit facilities through Nov. 26. Lenders also have agreed to provide continued liquidity during the period. On Sept. 25, Pilgrim’s Pride said its lenders had agreed to a similar waiver through Oct. 28.
The company also announced that it intends to exercise a 30-day grace period in making the $25.7 million interest payment due Nov. 3, on its 7-5/8% Senior Notes and 8-3/8% Senior Subordinated Notes.
"We have made significant progress in developing an appropriate and effective strategic response to the issues facing Pilgrim’s Pride and we look forward to executing against that plan," the company said. "Lenders have been constructive and supportive throughout this challenging period and we believe that like us, they are encouraged by recent industry egg set data and the continued decline in grain and other feed ingredient prices, which if sustained should bode well for our company and the industry as a whole."