Pilgrim's Pride announces rights offering for up to 44.44 million shares of common stock, expects to raise US$200M

GREELEY, Colorado , December 8, 2011 (press release) – Pilgrim's Pride Corporation (NYSE:PPC) today announced that, in line with its strategic intent of strengthening its capital structure, it plans to commence a rights offering for up to approximately 44.44 million shares of common stock to its stockholders.

Under the expected rights offering, each stockholder of record would receive, at no charge, non-transferable rights to purchase shares of Pilgrim's Pride common stock at a subscription price of $4.50 per share, representing a 5% discount on the last 60 trading days' weighted average, for aggregate gross proceeds to the Company of $200 million. Stockholders will be able to purchase their respective pro rata portions of the shares offered based on their ownership as of the record date for the rights offering. Stockholders who fully exercise their rights will be entitled to subscribe for and purchase, subject to certain limitations and subject to allotment, additional shares that remain unsubscribed for as a result of any unexercised rights.

JBS USA Holdings, Inc., the Company's majority stockholder, has indicated its current intention to purchase from the Company, at the subscription price, its pro rata share of the common stock to be offered and any unsubscribed for shares of common stock such that gross proceeds to Pilgrim's Pride of the offering will be $200 million.

The Company intends to file with the Securities and Exchange Commission a registration statement covering the rights offering, and the distribution of the rights and commencement of the offering will occur promptly following the effectiveness of the registration statement. The expiration of the rights offering is expected to occur during the first quarter of 2012. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The rights and common stock issuable upon exercise thereof have not been registered under the Securities Act of 1933 or applicable state securities laws, and may not be offered or sold in the United States absent registration or pursuant to an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state securities laws.

About Pilgrim's Pride

Pilgrim's employs approximately 40,500 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit http://www.pilgrims.com.

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