-1-
PILGRIM'S PRIDE CORPORATION
FIRST AMENDMENT TO AMENDED AND RESTATED SECURED CREDIT AGREEMENT
Harris Trust and Savings Bank
Chicago, Illinois
U.S. Bancorp Ag Credit, Inc.
(formerly known as FBS Ag Credit, Inc.)
Denver, Colorado
CoBank, ACB
Wichita, Kansas
ING (U.S.) Capital Corporation ("ING ")
New York, New York
Wells Fargo Bank (Texas), N.A.
Dallas, Texas
Credit Agricole Indosuez, Chicago Branch (successor by
merger to Caisse Nationale de Credit Agricole, Chicago Branch)
Chicago, Illinois
Ladies and Gentlemen:
Reference is hereby made to that certain Amended and Restated Secured
Credit Agreement dated as of August 11, 1997 (the "CREDIT AGREEMENT") among
the undersigned, Pilgrim's Pride Corporation, a Delaware corporation (the
"COMPANY"), you (the "BANKS") and Harris Trust and Savings Bank, as agent
for the Banks (the "AGENT"). All defined terms used herein shall have the
same meanings as in the Credit Agreement unless otherwise defined herein.
The Banks extend a $100,000,000 revolving credit facility to the
Company on the terms and conditions set forth in the Credit Agreement. The
Company, the Agent and the Banks now wish to amend the Credit Agreement to
reduce the amount of the Revolving Credit to $50,000,000, extend the
Termination Date of the Credit Agreement from May 31, 2000 to May 31, 2001,
provide for the withdrawal of Wells Fargo Bank (Texas), N.A. ("WELLS
FARGO") from the bank group, permit the Company to establish an accounts
receivable securitization program and amend various financial covenants and
other provisions of the Credit Agreement, all on the terms and conditions
and in the manner set forth in this Amendment.
1. AMENDMENTS.
Upon satisfaction of all of the conditions precedent set forth in
Section 2 hereof, the Credit Agreement shall be amended as follows:
1.1. Section 1.1(a) of the Credit Agreement shall be amended by
replacing the date "May 31, 2000" appearing therein with the date "May 31,
2001".
1.2. Section 1.1(c) of the Credit Agreement shall be amended to read
as follows:
"(c) The respective maximum aggregate principal amounts of the
Revolving Credit at any one time outstanding and the percentage of the
Revolving Credit available at any time which each Bank by its
acceptance hereof severally agrees to make available to the Company
are as follows (collectively, the "REVOLVING CREDIT COMMITMENTS" and
individually, a "REVOLVING CREDIT COMMITMENT"):
Harris Trust and Savings Bank $14,285,714 28.57%
U.S. Bancorp Ag Credit, Inc.
$10,714,286 21.43%
CoBank, ACB
$10,714,286 21.43%
ING (U.S.) Capital
Corporation $7,142,857 14.29%
Credit Agricole Indosuez,
Chicago Branch $7,142,857 14.29%
Total
$50,000,000 100%
Each Bank's Revolving Credit Commitment shall be reduced from time to
time by the aggregate outstanding principal amount of all Bid Loans
made by such Bank, and shall be increased (but in no event above the
amount set forth above for each Bank) by the aggregate principal
amount of each principal repayment of such Bid Loans made from time to
time."
1.3. The fifth sentence of Section 1.5 of the Credit Agreement shall
be amended by inserting the phrase "minus one-half of one percent" after
the phrase "Applicable Margin for Eurodollar Loans" appearing in clause (b)
thereof.
1.4. The definition of the term "APPLICABLE MARGIN" appearing in
Section 4.1 of the Credit Agreement shall be amended to read as follows:
" "APPLICABLE MARGIN" shall mean, with respect to each
type of Loan described in Column A below, the rate of
interest per annum shown in Columns B, C, D and E below
for the range of Leverage Ratio specified for each
Column:
A B C D E
Leverage Ratio <0.45 to 1 >.45 to 1 and >.50 to 1 and >.60 to 1 and
<0.5 to 1 <.60 to 1 <.70 to 1
Eurodollar Loans 1.00% 1.375% 1.625% 2.0%
Domestic Rate Loans 0.0% 0.125% 0.375% 0.75%
CD Rate Loans 1.125% 1.50% 1.75% 2.125%
Not later than 5 Business Days after receipt by the
Agent of the financial statements called for by
Section 7.4 hereof for the applicable fiscal quarter,
the Agent shall determine the Leverage Ratio for the
applicable period and shall promptly notify the Company
and the Banks of such determination and of any change
in the Applicable Margins resulting therefrom. Any
such change in the Applicable Margins shall be
effective as of the date the Agent so notifies the
Company and the Banks with respect to all Loans
outstanding on such date, and such new Applicable
Margins shall continue in effect until the effective
date of the next quarterly redetermination in
accordance with this Section. Each determination of
the Leverage Ratio and Applicable Margins by the Agent
in accordance with this Section shall be conclusive and
binding on the Company and the Banks absent manifest
error. From the date hereof until the Applicable
Margins are first adjusted pursuant hereto, the
Applicable Margins shall be those set forth in column D
above."
1.5. The definition of the term "BORROWING BASE" shall be amended to
read as follows:
""BORROWING BASE", as determined on the basis of the information
contained in the most recent Borrowing Base Certificate, shall mean an
amount equal to:
(a) 65% of the Value of Eligible Inventory consisting of feed
grains, feed and ingredients, plus
(b) 65% percent of the Value of Eligible Inventory consisting of
live and dressed broiler chickens and commercial eggs, plus
(c) 65% of the Value of Eligible Inventory consisting of
prepared foods, plus
(d) 100% of the Value of Eligible Inventory consisting of
breeder hens, breeder pullets, commercial hens, commercial pullets and
hatching eggs, plus
(e) 40% of the Value of Eligible Inventory consisting of
packaging materials, vaccines, general supplies, and maintenance
supplies, minus
(f) the aggregate outstanding amount of all Grower Payables that
are more than 15 days past due."
1.6. The definition of the term "Eligible Receivables" appearing in
Section 4.1 of the Credit Agreement shall be deleted.
1.7. Section 4.1 of the Credit Agreement shall be amended by adding
the following definitions thereto:
""FUNDING CORP." shall mean Pilgrim's Pride Funding Corporation,
a Delaware corporation.
"PAR CAPITAL" shall mean Pooled Accounts Receivable Capital
Corporation.
"RECEIVABLES SECURITIZATION PROGRAM" shall mean any receivables
securitization program to which the Company is a party which provides
for the sale by the Company, without recourse, of its Receivables for
a cash consideration of not less than 70% of the unpaid value of such
Receivables, and including in any event the receivables securitization
program pursuant to which the Company will sell to Funding Corp. all
or substantially all of the Company's receivables and Funding Corp.
will in turn sell an undivided interest in all of such Receivables to
PAR Capital."
1.8. Section 7.4(e) of the Credit Agreement shall be amended to read
as follows:
"(e) Intentionally Omitted."
1.9. Section 7.7 of the Credit Agreement shall be amended by adding
the following phrase immediately before the period appearing at the end
thereof:
", and (c) the sale of all or substantially all of the
Company's Receivables pursuant to a Receivables
Securitization Program."
1.10. Section 7.8 of the Credit Agreement shall be amended to read as
follows:
"SECTION 7.8. LEVERAGE RATIO. The Company will not permit the
ratio of its Leverage Ratio at any time during each period specified
below to exceed the ratio specified below for such period:
(a) from the last day of Fiscal Year 1997 through the next
to last day of Fiscal Year 1998, 0.675 to 1;
(b) from the last day of Fiscal Year 1998 through the next
to last day of Fiscal Year 1999, 0.65 to 1;
(c) from the last day of Fiscal Year 1999 through the next
to last day of Fiscal Year 2000, 0.625 to 1; and
(d) on the last day of Fiscal Year 2000 and thereafter,
0.60 to 1."
1.11. Section 7.13 of the Credit Agreement shall be amended to read as
follows:
"SECTION 7.13. MINIMUM NET WORKING CAPITAL. The Company will
maintain Net Working Capital at all times during each period specified
below (measured as of the last day of each monthly fiscal accounting
period) in an amount not less than the amount specified below for each
period:
(a) during Fiscal Year 1998, $50,000,000;
(b) during Fiscal Year 1999, $50,000,000;
(c) during Fiscal Year 2000, $55,000,000; and
(d) during each Fiscal Year thereafter, $60,000,000."
1.12. Section 7.14(b) of the Credit Agreement shall be amended to read
as follows:
"(b) additional capital expenditures in an aggregate amount not
to exceed $48,000,000 in Fiscal Years 1997, 1998 and 1999 in
connection with the acquisition and expansion of the fixed assets,
inventory and operations of Green Acre Foods, Inc."
1.13. Section 7.16 of the Credit Agreement shall be amended by deleting
the word "and" appearing after the semi-colon at the end of subsection (n)
thereof, by replacing the period at the end of subsection (o) thereof with
the phrase "; and" and by adding the following provision thereto as
subsection (p):
"(p) the interest of any purchaser of the Company's Receivables
purchased by it pursuant to a Receivables Securitization Program in
such Receivables."
1.14. Section 7.17 of the Credit Agreement shall be amended by deleting
the word "and" appearing after the semi-colon at the end of subsection (o)
thereof, by replacing the period at the end of subsection (p) thereof with
the phrase "; and" and by adding the following provision thereto as
subsection (q):
"(q) indebtedness of the Company and its Subsidiaries pursuant to
Receivables Securitization Programs."
1.15. Section 7.18 of the Credit Agreement shall be amended by deleting
the word "and" appearing after the semi-colon at the end of subsection (j)
thereof, by replacing the period at the end of subsection (k) thereof with
the phrase "; and" and by adding the following provision thereto as
subsection (l):
"(l) an initial capital contribution to Funding Corp. in an
amount of up to $1,000 and investments, if any, arising from the sale
of Receivables at a discount pursuant to Receivables Securitization
Programs."
1.16. Section 7.19 of the Credit Agreement shall be amended by deleting
the word "and" appearing after the semi-colon at the end of subsection (b)
thereof, by replacing the period at the end of subsection (c) thereof with
the phrase "; and" and by adding the following provision thereto as
subsection (d):
"(d) the sale by the Company of all or substantially all of its
Receivables pursuant to Receivables Securitization Programs."
1.17. Section 7.26 of the Credit Agreement shall be amended to read as
follows:
"SECTION 7.26. Intentionally Omitted."
1.18. Section 7.29 of the Credit Agreement shall be amended to read as
follows:
"SECTION 7.29. NEW SUBSIDIARIES. The Company will not, directly
or indirectly, create or acquire any Subsidiary except Funding Corp.
unless (a) after giving effect to any such creation or acquisition,
the total assets (determined in accordance with generally accepted
accounting principles, consistently applied) of all such Subsidiaries
would not exceed 5% of the Total Assets of the Company and its
Subsidiaries, and (b) all Inventory and Receivables of such
Subsidiaries are pledged to the Agent for the benefit of the Banks
pursuant to a security agreement substantially identical to the
Security Agreement."
1.19. Notwithstanding anything contained in this Agreement or the
documentation for the Receivables Securitization Program to the contrary,
the Receivables sold to Funding Corp. pursuant to the Receivables
Securitization Program will be treated as Receivables of the Company and
all indebtedness, obligations and liabilities of the Company and Funding
Corp. shall be treated as indebtedness, obligations and liabilities of the
Company for purposes of calculating compliance with the financial covenants
contained in Section 7 of the Credit Agreement.
1.20. Exhibit G to the Credit Agreement shall be replaced by Exhibit G
to this Amendment.
1.21. Exhibit I to the Credit Agreement shall be replaced by Exhibit I
to this Amendment.
2. CONDITIONS PRECEDENT.
The effectiveness of the Amendment is subject to the satisfaction of
all of the following conditions precedent:
2.1. The Company and each of the Banks shall have executed this
Amendment (such execution may be in several counterparts and the several
parties hereto may execute on separate counterparts).
2.2. Each of the representations and warranties set forth in Section 5
of the Credit Agreement shall be true and correct.
2.3. The Company shall be in full compliance with all of the terms and
conditions of the Credit Agreement and no Event of Default or Potential
Default shall have occurred and be continuing thereunder or shall result
after giving effect to this Amendment.
2.4. All legal matters incident to the execution and delivery hereof
and the instruments and documents contemplated hereby shall be satisfactory
to the Banks.
2.5. The Agent shall have received (in sufficient counterparts for
distribution to each of the Banks) all of the following in a form
satisfactory to the Agent, the Banks and their respective counsel:
(a) copies (executed or certified as may be appropriate) of all
legal documents or proceedings taken in connection with the execution
and delivery of this Amendment, and the other instruments and
documents contemplated hereby; and
(b) Opinion of counsel to the Company substantially in the form
of Exhibit A hereto and satisfactory to the Agent, the Banks and their
respective counsel.
2.6. The Agent shall have received for the ratable benefit of the
Banks an amendment fee in an amount equal to one-eighth of one percent
(0.125%) of the maximum amount of the Revolving Credit in effect after
giving effect to this Amendment.
3. REPRESENTATIONS AND WARRANTIES.
3.1. The Company, by its execution of this Amendment, hereby
represents and warrants the following:
(a) each of the representations and warranties set forth in
Section 5 of the Credit Agreement is true and correct as of the date
hereof, except that the representations and warranties made under
Section 5.3 shall be deemed to refer to the most recent annual report
furnished to the Banks by the Company; and
(b) the Company is in full compliance with all of the terms and
conditions of the Credit Agreement and no Event of Default or
Potential Default has occurred and is continuing thereunder.
4. MISCELLANEOUS.
4.1. Upon satisfaction of the conditions precedent set forth above,
the Company shall be deemed to have requested from the Banks other than
Wells Fargo loans in an aggregate principal amount equal to the unpaid
principal amount of the Secured Revolving Credit Note dated August 11, 1997
payable to the order of Wells Fargo (the "WELLS FARGO NOTE"), and such
Banks will make such loans if all conditions set forth in Section 6.2 of
the Credit Agreement are satisfied. The proceeds of such loans shall be
used exclusively to pay the outstanding principal balance of the Wells
Fargo Note, and the Company will pay all accrued interest thereon and all
other fees and other amounts due to Wells Fargo , including without
limitation accrued and unpaid commitment fees, letter of credit fees and
all amounts, if any, payable under Section 9.4 of the Credit Agreement with
respect to such prepayment. Upon payment in full of all principal of and
accrued interest on such Wells Fargo Note, and all such other amounts, all
participations in L/Cs and Reimbursement Obligations by Wells Fargo shall
terminate and Wells Fargo shall cease to be a party to the Credit Agreement
and shall have no rights or obligations thereunder except for its rights
under Sections 9.3, 9.4, 11.5 and 11.9 which shall continue unaffected by
this Amendment.
4.2. The Company has heretofore executed and delivered to the Agent
that certain Security Agreement Re: Accounts Receivable, Farm Products and
Inventory dated as of May 27, 1993, as amended (the "SECURITY AGREEMENT")
and the Company hereby agrees that the Security Agreement shall secure all
of the Company's indebtedness, obligations and liabilities to the Agent and
the Banks under the Credit Agreement as amended by this Amendment, that
notwithstanding the execution and delivery of this Amendment, the Security
Agreement shall be and remain in full force and effect and that any rights
and remedies of the Agent thereunder, obligations of the Company thereunder
and any liens or security interests created or provided for thereunder
shall be and remain in full force and effect and shall not be affected,
impaired or discharged thereby. Nothing herein contained shall in any
manner affect or impair the priority of the liens and security interests
created and provided for by the Security Agreement as to the indebtedness
which would be secured thereby prior to giving effect to this Amendment.
4.3. Except as specifically amended herein the Credit Agreement and
the Notes shall continue in full force and effect in accordance with their
original terms. Reference to this specific Amendment need not be made in
any note, document, letter, certificate, the Credit Agreement itself, the
Notes, or any communication issued or made pursuant to or with respect to
the Credit Agreement, any reference to the Credit Agreement being
sufficient to refer to the Credit Agreement as amended hereby.
4.4. The Company agrees to pay all out-of-pocket costs and expenses
incurred by the Agent and Banks in connection with the preparation,
execution and delivery of this Amendment and the documents and transactions
contemplated hereby, including the fees and expenses of Messrs. Chapman and
Cutler.
4.5. This Amendment may be executed in any number of counterparts, and
by the different parties on different counterparts, all of which taken
together shall constitute one and the same Agreement. Any of the parties
hereto may execute this Amendment by signing any such counterpart and each
of such counterparts shall for all purposes be deemed to be an original.
4.6. (A) THIS AMENDMENT AND THE RIGHTS AND DUTIES OF THE PARTIES
HERETO, SHALL BE CONSTRUED AND DETERMINED IN ACCORDANCE WITH THE INTERNAL
LAWS OF THE STATE OF ILLINOIS, EXCEPT TO THE EXTENT PROVIDED IN
SECTION 4.6(b) HEREOF AND TO THE EXTENT THAT THE FEDERAL LAWS OF THE UNITED
STATES OF AMERICA MAY OTHERWISE APPLY.
(b) NOTWITHSTANDING ANYTHING IN SECTION 4.6(a) HEREOF TO THE
CONTRARY, NOTHING IN THIS AMENDMENT, THE CREDIT AGREEMENT, THE NOTES, OR
THE OTHER LOAN DOCUMENTS SHALL BE DEEMED TO CONSTITUTE A WAIVER OF ANY
RIGHTS WHICH THE COMPANY, THE AGENT OR ANY OF THE BANKS MAY HAVE UNDER THE
NATIONAL BANK ACT OR OTHER APPLICABLE FEDERAL LAW.
4.7. The Banks hereby authorize and direct the Agent to release its
security interest in any of the Company's Receivables (as defined in the
Security Agreement) that have been sold from time to time pursuant to a
Receivables Securitization Program and related rights and properties and to
execute and deliver from time to time such amendments to the Security
Agreement and related UCC financing statements as the Agent may deem
necessary or convenient to reflect such release.
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Dated as of June ___, 1998.
PILGRIM'S PRIDE CORPORATION
By
____________Its Executive President
Accepted and Agreed to as of the day and year last above written.
HARRIS TRUST AND SAVINGS BANK
individually and as Agent
By
_________________Its Vice President
U.S. BANCORP AG CREDIT, INC.
By
________________________________Its
COBANK, ACB
By
________________________________Its
ING (U.S.) CAPITAL CORPORATION
By
________________________________Its
WELLS FARGO BANK (TEXAS), N.A.
By
________________________________Its
CREDIT AGRICOLE INDOSUEZ, CHICAGO
BRANCH
By
________________________________Its
By
________________________________Its
EXHIBIT A
(TO BE RETYPED ON LETTERHEAD OF COUNSEL
AND DATED AS OF DATE OF CLOSING)
__________, 1998
Harris Trust and Savings Bank
Chicago, Illinois
U.S. Bancorp Ag Credit, Inc.
(formerly known as FBS Ag Credit, Inc.)
Denver, Colorado
CoBank, ACB
Wichita, Kansas
ING (U.S.) Capital Corporation ("ING ")
New York, New York
Wells Fargo Bank (Texas), N.A.
Dallas, Texas
Credit Agricole Indosuez, Chicago Branch (successor by
merger to Caisse Nationale de Credit Agricole, Chicago Branch)
Chicago, Illinois
Ladies and Gentlemen:
We have served as counsel to Pilgrim's Pride Corporation, a Delaware
corporation (the "BORROWER"), in connection with the amendment and
extension of the revolving credit facility being made available by you to
the Borrower pursuant to the Amended and Restated Secured Credit Agreement
dated as of August 11, 1997 (the "CREDIT AGREEMENT") among the Borrower and
you. As such counsel, we have supervised the taking of the corporate
proceedings necessary to authorize the execution and delivery of, and have
examined executed originals of, the First Amendment to Amended and Restated
Secured Credit Agreement dated as of June ___, 1998 (the "AMENDMENT") among
the Borrower and you. As counsel to the Borrower, we are familiar with the
articles of incorporation, charter, by-laws and any other agreements under
which the Borrower is organized. We have also examined such other
instruments and records and inquired into such other factual matters and
matters of law as we deem necessary or pertinent to the formulation of the
opinions hereinafter expressed.
Based upon the foregoing and upon our examination of the articles of
incorporation, charter and by-laws of the Borrower, we are of the opinion
that:
1. The Borrower is a corporation duly organized and validly existing
and in good standing under the laws of the State of Delaware with full and
adequate corporate power and authority to carry on its business as now
conducted and is duly licensed or qualified and in good standing in all
jurisdictions wherein the conduct of its business or the assets and
properties owned or leased by it require such licensing or qualification.
2. The Borrower has full right, power and authority to borrow from
you, to mortgage, pledge, assign and otherwise encumber its assets and
properties as collateral security for such borrowings, to execute and
deliver the Amendment executed by it and to observe and perform all the
matters and things therein provided for. The execution and delivery of the
Amendment by the Borrower does not, nor will the observance or performance
of any of the matters or things therein provided for, contravene any
provision of law or of the respective articles of incorporation, charter or
by-laws of the Borrower (there being no other agreements under which the
Borrower is organized) or, to the best of our knowledge after due inquiry,
of any covenant, indenture or agreement binding upon or affecting the
Borrower or any of its properties or assets.
3. The Amendment executed by the Borrower has been duly authorized
by all necessary corporate action (no stockholder approval being required),
has been executed and delivered by the proper officers of the Borrower and
the Credit Agreement, as amended by the Amendment, constitutes a valid and
binding agreement of the Borrower enforceable against it in accordance with
its terms, subject to bankruptcy, insolvency and other similar laws
affecting creditors' rights generally and to general principles of equity.
4. No order, authorization, consent, license or exemption of, or
filing or registration with, any court or governmental department, agency,
instrumentality or regulatory body, whether local, state or federal, is or
will be required in connection with the lawful execution and delivery of
the Amendment or the observance and performance by the Borrower of any of
the terms of the Credit Agreement as amended by the Amendment.
5. To the best of our knowledge after due inquiry, there is no
action, suit, proceeding or investigation at law or in equity before or by
any court or public body pending or threatened against or affecting the
Borrower or any of its assets and properties which, if adversely
determined, could result in any material adverse change in the properties,
business, operations or financial condition of the Borrower or in the value
of the collateral security for your loans and other credit accommodations
to the Borrower.
6. The rates of interest provided for under the Credit Agreement and
the Loan Documents (as defined in the Credit Agreement) and any other
amounts payable thereunder that would constitute interest would not violate
any usury law of the State of Texas should such laws apply to the Credit
Agreement, any of the Loan Documents or any of the indebtedness,
obligations and liabilities of the Borrower or Mr. and Mrs. Lonnie A.
Pilgrim thereunder.
We are admitted to practice law only in the State of Texas and do not
purport to be experts in or qualified to express legal conclusions with
respect to the laws of any jurisdiction other than the State of Texas or of
the United States of America, except the Business Corporation Act of the
State of Delaware.
____________Respectfully submitted,
EXHIBIT G
Pilgrim's Pride Corporation
BORROWING BASE CERTIFICATE
as of _____________________
($000's omitted)
This Borrowing Base Certificate is furnished to Harris Trust and
Savings Bank, as agent (the "AGENT"), pursuant to that certain Amended and
Restated Secured Credit Agreement dated as of August 11, 1997, as amended,
by and among Pilgrim's Pride Corporation (the "COMPANY"), Harris Trust and
Savings Bank and the other Bank parties thereto (the "AGREEMENT"). Unless
otherwise defined herein, the terms used in this Borrowing Base Certificate
have the meanings ascribed thereto in the Agreement.
THE UNDERSIGNED HEREBY CERTIFIES THAT:
1. I am the duly elected Chief Financial Officer of the
Company.
2. I have reviewed the terms of the Agreement and I have made,
or have caused to be made under my supervision, the attached
computation of the Borrowing Base as defined in Section 4.1 of the
Agreement.
3. No change of name, corporate identity or address of the
chief executive office of the Company has occurred.
4. I have reviewed the terms of the Agreement and, pursuant to
such review, I have no knowledge of the existence of any condition or
event which would constitute a Potential Default or Event of Default,
except as set forth below (detailing the nature of the condition or
event, the period during which it has existed and the action which the
Company has taken, is taking or proposes to take with respect to each
such condition or event):
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
4. The information above and any attached exhibits do not
contain any untrue statement of material fact or omit a material fact,
either individually or in aggregate, that would make the information
or any attached exhibits misleading.
PILGRIM'S PRIDE CORPORATION
By __________________________________
ITS
SUMMARY OF COLLATERAL POOL
Dated as of ___________, 199__
INVENTORY ADVANCE
UNITS VALUE VALUE
1.) Live Broilers __________ $_________ $__________
2.) Breeder Hens __________ $_________ $__________
3.) Breeder Pullets __________ $_________ $__________
4.) Commercial Hens __________ $_________ $__________
5.) Commercial Pullets __________ $_________ $__________
6.) Grain Feed (Field) __________ $_________ $__________
7.) Eggs (Hatching
/In Transit) __________ $_________ $__________
8.) Dressed Broilers __________ $_________ $__________
9.) Prepared Foods __________ $_________ $__________
10.) Eggs (Commercial) __________ $_________ $__________
11.) Grain (Feedmills) __________ $_________ $__________
12.) Branch Inventory
of Packaged Items $_________ $__________
13.) Packaging, Vaccines,
Supplies $_________ $__________
SUBTOTAL (lines 1-13) __________ $_________ $__________
14.) Less Grower Payables
Greater than 15 days ($__________)
TOTAL COLLATERAL POOL $_________ $__________
13.) Less O/S Indebtedness as of: _________ $__________
TOTAL AVAILABLE CREDIT: $__________
COLLATERAL VALUE COMPUTATIONS
Dated as of __________, 199__
COLLATERAL POOL:
GROSS VALUE Advance
COMPUTATION VALUE
1) Live Broiler Value:
Number of Head __________ Head
(-) Death/Reject Rate (4%) __________ Head
(x) Avg. Weight per Bird (2 __________ Lbs.
Lbs.)
(x) ________________________ _________ cents/lb.
as of ___________ __________x 65%____________
2) Breeder Hen Value:
Number of Head __________ Head
(x) Loan Value @ $1.50/bird ________@ 100% ____________
3) Breeder Pullet Value:
Number of Head __________ Head
(x) Loan Value @ $1.00/bird ________@ 100% ____________
4) Commercial Hen Value:
Number of Head __________ Head
(x) Loan Value @ $0.70/bird ________ @ 100% ____________
5) Commercial Pullet Value:
Number of Head __________ Head
(x) Loan Value @ $0.40/bird ________ @ 100% ____________
6) Grain Feed Value (Field):
Number of Head (NET) __________ Head
(x) 0.75 Lbs/day (/) 2,000 __________ Tons
(x) Feed Cost/Ton ____________ __________ x 65%____________
7) Eggs (Hatching & In Transit):
Number of Dozens __________ Dozen
(x) $1.25/Doz ________ @ 100% ____________
8) Dressed Broilers (All Locations):
Number of pounds __________ Lbs
(x) Price/Lb. computed ____________ __________ x 65%____________
9) Prepared Foods (All Locations)
Number of pounds ___________ Lbs.
(x) Price/Lb. computed _____________ __________ x 65%____________
10) Eggs (Commercial)
Number of Dozens __________ Dozen
(x) ____________/dozen __________ x 65%____________
11) Grain Value (Feedmills):
Corn: ______ x ______ __________ x 65%____________
Cost/Ton
Soybean Meal: ______ x ______ __________ x 65%____________
Cost/Ton
Feed Supplements: ______ x ______ __________ x 65%____________
Cost/Ton
Finished Feeds: ______ x ______ __________ x 65%____________
Cost/Ton
Total Tons: ______ __________ x 65%____________
12) Branch Inventory of Packaged
Items (@ Cost) __________ x 65%____________
13) Packaging, Vaccines, Supplies (@ __________ x 40%____________
Cost)
TOTAL COLLATERAL POOL ________ _________