01—Abstract
Summary
Summary of the 8-K filed December 15, 2025. Cited figures are marked; the original filing is the authoritative source.
On December 12, 2025, Tyson Foods, Inc. entered into a new Loan Agreement with a group of lenders and CoBank, ACB as administrative agent.
The agreement replaced the company's existing 2023 Term Loan Agreement, which had aggregate commitments of up to $750 milliona and $440 million of outstanding borrowings on the effective date. At entry, the company repaid all outstanding borrowings and interest under the 2023 facility and terminated its commitments thereunder. The new Loan Agreement provides a senior unsecured revolving credit facility with aggregate commitments of $750 million, maturing on the third anniversary of the effective date.
The company may elect, with at least ten business days' notice before maturity, to convert outstanding revolving borrowings into Tranche A, B, C or D term loans maturing one, three, five or seven years after the revolving maturity date. Pricing is tied to Term SOFR or Daily Simple SOFR plus a spread, or an alternate base rate plus a spread, and the spread and unused commitment fee step up across four rating levels based on the company's S&P or Moody's corporate credit rating. The unused commitment fee ranges from 0.100%b to 0.200%.
The covenants are generally consistent with the 2023 facility and include limits on subsidiary indebtedness, liens, mergers, asset sales and changes in lines of business, as well as a minimum interest expense coverage ratio of 3.50 to 1.0 measured quarterly on a trailing four-quarter basis. The Loan Agreement is filed as Exhibit 10.1 and its events of default are substantially consistent with the prior agreement.
02—Key points
Key Highlights
- On December 12, 2025, Tyson entered into a new Loan Agreement with CoBank, ACB as administrative agent, replacing its 2023 Term Loan Agreement.
- The 2023 Term Loan Agreement had commitments of up to $750 million and $440 million of outstanding borrowings on the effective date, all of which were repaid and the commitments terminated.
- The new facility is a $750 million senior unsecured revolving credit facility maturing on the third anniversary of the effective date.
- The company may convert revolving borrowings into Tranche A, B, C or D term loans maturing one, three, five or seven years after the revolving maturity date.
- Pricing steps up across four rating levels, with the unused commitment fee ranging from 0.100% to 0.200% and the Tranche D spread up to 2.225% at the lowest rating level.
- A minimum interest expense coverage ratio of 3.50 to 1.0 is required, measured quarterly on a trailing four-quarter basis, consistent with the prior agreement.
- The Loan Agreement is filed as Exhibit 10.1 and is incorporated into Items 1.01, 1.02 and 2.03 of this 8-K.
03—Questions
Frequently Asked Questions
How much can Tyson Foods borrow under the new Loan Agreement?
The Loan Agreement provides a senior unsecured revolving credit facility with aggregate commitments of $750 million.
What happened to the company's existing 2023 Term Loan Agreement?
The 2023 Term Loan Agreement was replaced by the Loan Agreement. On the effective date, the company repaid all outstanding borrowings and interest of $440 million and terminated all commitments under that agreement.
When does the new revolving facility mature, and what are the term-out options?
The revolving facility matures on the third anniversary of the December 12, 2025 effective date. The company may elect, with at least ten business days' notice, to convert outstanding borrowings into Tranche A, B, C or D term loans maturing one, three, five or seven years, respectively, after the revolving maturity date.
How is the borrowing cost determined?
Interest accrues at the company's option at Term SOFR or Daily Simple SOFR plus an applicable spread, or at an alternate base rate plus a spread. The spread and the unused commitment fee depend on the company's S&P or Moody's corporate credit rating, across four levels.
What financial covenant applies to the company?
The company must maintain a minimum interest expense coverage ratio, defined as Consolidated EBITDA to Consolidated Cash Interest Expense, of at least 3.50 to 1.0 as of the end of each fiscal quarter, calculated on a trailing four-quarter basis.
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