J.P. Morgan and Salomon Smith Barney are preparing a bank facility for Swift & Co--the name given to the ConAgra Foods' beef and pork processing business, the majority of which was acquired by Hicks, Muse, Tate & Furst in a $1.4 billion deal last month. The credit is said to include a $200 million "B" term loan, but pricing, timing of the launch and other tranches could not be ascertained. Officials at the banks and a ConAgra spokesman did not return calls by press time.
ConAgra is reducing its equity interest in the business from more than $1 billion to just $150 million. Hicks, Muse in conjunction with Booth Creek Management and George Gillett-ck will own 54% of the new venture. ConAgra, meanwhile, will receive $800 million in cash and transfer some of its debt to the joint venture. Swift will then owe ConAgra $180 million in debt and about $250 million in credit. An extra $100 million in credit lines will be available from ConAgra to the cattle-feeding subsidiary of the joint venture.