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Pilgrim's Pride bonds drop to new lows

NEW YORK, Nov 3 (Reuters) - Pilgrim's Pride Corp's PPC.N bonds slid to new lows on Monday as the company faces a one-month deadline to make interest payments on its bank credit agreements.

The chicken producer said last week it had received a 30-day waiver on certain terms in its credit agreements and that it would exercise a 30-day grace period on a $25.7 million interest payment on senior notes due Nov. 3.

Standard & Poor’s cut its ratings on the company to “CC,” just above default, after the news. Moody’s Investors Service cut Pilgrim’s Pride to “Caa2,” three steps above default, citing concerns the company has not reached a permanent agreement with its lenders.

Pilgrim’s Pride’s 8.375 percent bond due 2017 dropped 4.2 cents to 11.25 cents on the dollar on Monday, according to MarketAxess.

A group of investors filed a lawsuit against the company last week, claiming the U.S. chicken producer misrepresented its financial condition and concealed its capital problems. For details, see [ID:nN30297196] (Reporting by Karen Brettell; Editing by Dan Grebler)

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