SMITHFIELD, Va. (AP) — Smithfield Foods Inc. said Wednesday that it will refinance its debt with a $650 million public offering of senior notes.
The Smithfield, Va.-based company, whose brands include Armour, Farmland and its namesake, said the notes are due in 2022 .
Smithfield will use the proceeds to buy back outstanding shares of its 7.75 percent senior notes due next year and 10 percent senior secured notes that are due in 2014,
Barclays Capital Inc. and Goldman, Sachs & Co. are joint managers for the offering.
Last month Smithfield said its fiscal fourth-quarter profit fell 19 percent because of slow sales growth, lower margins on fresh pork and higher selling costs. Like other food companies, Smithfield is trying to balance its rising costs for ingredients without scaring off consumers by hiking prices.
Smithfield shares rose 63 cents, or 3.5 percent, to $18.48 in afternoon trading.