DOW JONES NEWSWIRES
ConAgra Foods Inc. (CAG) boosted its debt-repurchase tender
offer by $300 million amid strong demand Monday from investors in
the wake of the consumer-foods company raising $1 billion to repay
other debt.
The sale itself was increased from $750 million two weeks
ago.
Holders tendered $290.6 million of so-called put notes as of
Friday's deadline to receive an extra payment; there are $300
million of the notes outstanding.
Meanwhile, $679.4 million of senior notes due in 2010 and 2011
were tendered as of Friday; ConAgra originally offered to buy up to
$300 million of them. Monday's announcement doubles that
figure.
ConAgra has been hurt by hedging costs as commodity prices
plunged from their July peak. The company has cut back on capital
spending in an effort to preserve cash. S&P cut its credit
rating on ConAgra earlier this month to two steps above junk
territory, saying the company's financial condition isn't likely to
improve much amid the economic downturn.
Last month, the company reported a fiscal third-quarter profit
that exceeded analysts' projections, but packaged-food shipments
fell and the company lowered prices on some products in the face of
private-label competition.
Shares were recently down 10 cents at $18.17.
-By Katherine E. Wegert, Dow Jones Newswires; 201-938-5294;
katherine.wegert@dowjones.com