Pilgrim’s Pride Corporation has launched a cash tender offer to repurchase up to $250 million of its 6.250% senior notes due 2033. The offer will expire on April 27, 2026, with early tender eligibility ending on April 10, 2026. Note holders can tender their securities for cash, and the company will fund the repurchase with cash on hand.
The 6.250% senior notes have a principal amount outstanding of $922.5 million. The tender price is set at the higher of the offer price, which equals the 4.125% U.S. Treasury yield due February 15, 2036 plus a fixed spread of 95 basis points, and the early tender price of $50 per $1,000 principal. The company’s balance sheet remains strong, with net leverage below 1.1× adjusted EBITDA and net sales of $18.5 billion in Q4 2025, compared with $4.8 billion in Q3 2025 and a net leverage ratio of roughly 1.0×.
Repurchasing the notes will reduce long‑term debt, improve leverage ratios, and enhance interest coverage, reinforcing the company’s ability to fund future growth and return capital to shareholders. The move follows a disciplined capital deployment cycle that included a $2 billion special dividend in 2025 and a $1.5 billion special dividend in March 2025, as well as earlier tender offers for 5.875% notes due 2027 and 5.750% notes due 2025. These actions demonstrate a consistent strategy of optimizing the capital structure while maintaining liquidity.
CEO Fabio Sandri has emphasized the company’s confidence in its financial position, stating, 'Pilgrim's is confident in the future of our business and we believe our capital allocation strategy positions the company for continued, disciplined growth and enhanced earnings potential across our diversified portfolio. The Board's decision to pay a special dividend reflects our strong balance sheet and our commitment to create long‑term stockholder value.' The tender offer aligns with that outlook, signaling management’s intent to preserve cash and strengthen the balance sheet.
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