New York, Feb 11, 2026, 13:42 (EST) — Regular session
- Tyson Foods shares dipped 0.6%, trading at $64.55 by midday
- Company issued $500 million of 4.950% senior notes maturing in 2036 to refinance upcoming debt
- Investors are keeping an eye on the February 20 settlement and the note payoff scheduled for March 2026
Tyson Foods shares dropped 0.6% to $64.55 on Wednesday, slipping 41 cents, as the meatpacker pushed forward with a new debt agreement.
Timing is crucial. Tyson faces a debt maturity in March, and with interest rates still dominating credit markets, the cost of rolling over that debt is a key concern.
Tyson reported in a prospectus supplement that it had $800 million in 4.00% notes maturing in March 2026 as of Dec. 27. The company indicated these notes are prime candidates for repayment using proceeds from its new offering. (Stock Titan)
Tyson announced it has agreed to sell $500 million in 4.950% senior notes due 2036 through an underwritten public offering, aiming to close the deal by Feb. 20, pending usual conditions. The company plans to use the net proceeds for general corporate needs, including reducing existing debt. (GlobeNewswire)
“Senior notes” refer to corporate bonds. The “coupon” indicates the interest rate paid to investors. An underwritten offering happens when banks purchase the bonds first, then sell them to investors.
A Form 8-K filing revealed Tyson struck an underwriting deal with BofA Securities, J.P. Morgan Securities, and Morgan Stanley acting as lead underwriters. The notes will be issued under Tyson’s current indenture, with a supplement added at closing, according to the filing signed by CFO Curt Calaway.
The reaction among protein stocks was uneven. Hormel shares dropped 1.9%, but Pilgrim’s Pride edged up 0.8%. Meanwhile, the S&P 500 ETF SPY saw a modest gain.
Tyson’s stock has reacted sharply to shifts between chicken demand and a challenging beef market. On its Feb. 2 earnings call, CEO Donnie King pointed to beef as “the big challenge,” while COO Devin Cole noted that consumers are favoring “value-oriented protein choices.” (Reuters)
The new 2036 notes offer a higher coupon compared to the March notes the company plans to retire. But if credit spreads widen, refinancing after this maturity could become more expensive.
Traders will zero in on the Feb. 20 closing and watch how the company handles retiring the March 2026 notes after the proceeds come through. Expect any updates to appear in a follow-up SEC filing related to the bond offering. (Nasdaq)
