Agricultural Bank of China contributes to $37.5 million USD to $2.5 billion USD syndicated term loan facility to Tyson Foods for the acquisition of Hillshire Brands in 2014

Project narrative

On July 15, 2014, financial close was reached on a deal in which a syndicate of 48 banks — including Agricultural Bank of China, New York Branch — entered into a $2.5 billion USD syndicated loan agreement with Tyson Foods, Inc., a Springdale, Arkansas-based multinational corporation engaged in the production of processed foods, especially beef, chicken, and pork — to finance the acquisition of The Hillshire Brands Company. This loan was divided into three tranches: a 3-Year Tranche ($1.306 billion USD); a 5-Year Tranche A ($593.75 million USD); and a 5-Year Tranche B ($600 million USD). The maturity of the loan is 3 to 5 years and the interest rate is LIBOR plus an applicable margin. The proceeds were used by the borrower to finance the acquisition of The Hillshire Brands Company, a major producer of packaged meat and frozen bakery products, in a strategic move to expand Tyson's presence in the prepared foods sector. While Agricultural Bank of China contributed $37.5 million USD to this loan, the following lenders also participated: Morgan Stanley Bank, N.A.; Morgan Stanley Senior Funding, Inc.; JPMorgan Chase Bank, N.A.; Rabobank Nederland, New York Branch; Bank of America, N.A.; HSBC Bank USA, National Association; Mizuho Bank, Ltd.; Royal Bank of Canada; U.S. Bank National Association; The Bank of Tokyo-Mitsubishi UFJ, Ltd.; Barclays Bank PLC; Branch Banking and Trust Company; Compass Bank; Credit Agricole Corporate and Investment Bank; ING Bank N.V., Dublin Branch; Société Générale; Sumitomo Mitsui Banking Corporation; SunTrust Bank; Toronto Dominion (Texas) LLC; Wells Fargo Bank, N.A.; Australia and New Zealand Banking Group Limited; BMO Harris Bank N.A.; The Bank of Nova Scotia; Bank of the West; First Hawaiian Bank; Capital One, N.A.; Fifth Third Bank; The Huntington National Bank; KeyBank National Association; Mediobanca International (Luxembourg) S.A.; The Northern Trust Company; PNC Bank, National Association; Citizens Bank, N.A.; Regions Bank; Santander Bank, N.A.; Arvest Bank; Comerica Bank; First Commercial Bank, Ltd.; Farm Credit Services of Western Arkansas, PCA; Farm Credit Services of America, PCA; and AgStar Financial Services, PCA. On August 18, 2014, the acquisition is completed.