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DEBT | 9 Months Ended
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Sep. 29, 2024
Debt Disclosure [Abstract] |
DEBT | DEBT Long-term debt and other borrowing arrangements, including current notes payable to banks, consisted of the following components:
| Maturity |  | September 29, 2024 |  | December 31, 2023
|  |  | (In thousands)
Senior notes payable, net of discount, at 6.875% | 2034 |  | $ | 491,099 |  |  | $ | 490,408 |
Senior notes payable, net of discount, at 6.25% | 2033 |  | 974,217 |  |  | 993,595 |
Senior notes payable at 3.50% | 2032 |  | 900,000 |  |  | 900,000 |
Senior notes payable, net of discount, at 4.25% | 2031 |  | 850,129 |  |  | 992,711 |
U.S. Credit Facility (defined below) at SOFR plus 1.35% | 2028 |  | — |  |  | — |
Europe Credit Facility (defined below) with notes payable at SONIA plus 1.25% | 2027 |  | — |  |  | — |
Mexico Credit Facility (defined below) with notes payable at TIIE plus 1.35% | 2026 |  | — |  |  | — |
Finance lease obligations | Various |  | 1,934 |  |  | 2,486 |
Long-term debt |  |  | 3,217,379 |  |  | 3,379,200 |
Less: Current maturities of long-term debt |  |  | (546) |  |  | (674) |
Long-term debt, less current maturities |  |  | 3,216,833 |  |  | 3,378,526 |
Less: Capitalized financing costs |  |  | (32,753) |  |  | (37,685) |
Long-term debt, less current maturities, net of capitalized financing costs |  |  | $ | 3,184,080 |  |  | $ | 3,340,841 |
Bond Repurchase Program On May 1, 2024, the Board approved a bond repurchase program which authorizes the Company to repurchase up to an aggregate $200.0 million of the Company’s outstanding senior notes. Under the program, the Company has repurchased $144.3 million of outstanding principal of the Senior Notes due 2031 and $20.0 million of outstanding principal of the Senior Notes due 2033, resulting in gross realized gains of $13.8 million, including immaterial realized gains recognized in the three months ended September 29, 2024. The gross realized gains on early extinguishment of debt are recognized as a reduction in interest expense. The original discount and capitalized financing costs of $1.1 million and $1.2 million associated with the amounts repurchased, respectively, are partially offsetting the gross gains on early extinguishment of debt, along with a nominal amount of transaction fees. U.S. Credit Facility On October 4, 2023, the Company and certain of the Company’s subsidiaries entered into a Revolving Syndicated Facility Agreement (the “U.S. Credit Facility”) with CoBank, ACB as administrative agent and the other lenders party thereto. The U.S. Credit Facility provides for a revolving loan commitment of up to $850.0 million. The loan commitment matures on October 4, 2028. The U.S. Credit Facility is unsecured and will be used for general corporate purposes. Outstanding borrowings under the U.S. Credit Facility bear interest at a per annum rate equal to either the Secured Overnight Financing Rate (“SOFR”) or the prime rate plus applicable margins based on the Company’s credit ratings. As of September 29, 2024, the Company had outstanding letters of credit and available borrowings under the revolving credit commitment of $24.7 million and $825.3 million, respectively, and there were no outstanding borrowings under this agreement. The U.S. Credit Facility requires customary financial and other covenants for transactions of this type, including limitations on 1) liens, 2) indebtedness, 3) sales and other dispositions of assets, 4) dividends, distributions, and other payments in respect of equity interest, 5) investments, and 6) voluntary prepayments, redemptions or repurchases of junior debt. In each case, clauses 1 to 6 are subject to certain exceptions which can be material and certain of such clauses only apply to the Company upon the occurrence of certain triggering events. The Company is currently in compliance with the covenants under the U.S. Credit Facility. Europe Credit Facility On June 24, 2022, Moy Park Holdings (Europe) Ltd. (“MPH(E)”) and other Pilgrim’s entities located in the U.K. and Republic of Ireland entered into an unsecured multicurrency revolving facility agreement (the “Europe Credit Facility”) with the Governor and Company of the Bank of Ireland, as agent, and the other lenders party thereto. The Europe Credit Facility provides for a multicurrency revolving loan commitment of up to £150.0 million. The loan commitment matures on June 24, 2027. Outstanding borrowings bear interest at the current Sterling Overnight Index Average (“SONIA”) interest rate plus 1.25%. All obligations under this agreement are guaranteed by certain of the Company’s subsidiaries. As of September 29, 2024, both the U.S. dollar-equivalent loan commitment and borrowing availability were $200.6 million and there were no outstanding borrowings under this agreement. The Europe Credit Facility contains representations and warranties, covenants, indemnities and conditions, in each case, that the Company believes are customary for transactions of this type. Pursuant to the terms of the agreement, the Company is required to meet certain financial and other restrictive covenants. Additionally, the Company is prohibited from taking certain actions without consent of the lenders, including, without limitation, incurring additional indebtedness, entering into certain mergers or other business combination transactions, permitting liens or other encumbrances on its assets and making restricted payments, including dividends, in each case, except as expressly permitted under the Europe Credit Facility. The Company is currently in compliance with the covenants under the Europe Credit Facility. Mexico Credit Facility On August 15, 2023, certain of the Company’s Mexican subsidiaries entered into an unsecured credit agreement (the “Mexico Credit Facility”) with BBVA México as lender. The loan commitment under the Mexico Credit Facility is Mex$1.1 billion and can be borrowed on a revolving basis. Outstanding borrowings under the Mexico Credit Facility accrue interest at a rate equal to The Interbank Equilibrium Interest (“TIIE”) rate plus 1.35%. The Mexico Credit Facility contains covenants and defaults that the Company believes are customary for transactions of this type. The Mexico Credit Facility will be used for general corporate and working capital purposes. The Mexico Credit Facility will mature on August 15, 2026. As of September 29, 2024, the U.S. dollar-equivalent of the loan commitment and borrowing availability was $56.4 million. As of September 29, 2024, there were no outstanding borrowings under the Mexico Credit Facility. The Company is currently in compliance with the covenants under the Mexico Credit Facility.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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