In Brief: B of A Chickens Out Of $2.5B Tyson Loan

January 11, 2001, 2:00 a.m. EST 1 Min Read

SPRINGDALE, Ark. Bank of America Corp. pulled out of a $2.5 billion loan to Tyson Foods Inc., leaving J.P. Morgan Chase & Co., Merrill Lynch & Co., and SunTrust Banks Inc. holding the bag, Tyson Foods said Wednesday.

Bank of America was to take an agent role in the loan, funding about one-quarter of the deal, even after the chicken producer passed over its longtime lender in favor of J.P. Morgan Chase and Merrill Lynch as the deals lead arrangers. But executives at the Charlotte, N.C., banking company decided to pull out of the syndicate, said Louis Gottsponer, director of investor relations at Tyson.

Bank of America did not return calls about the deal.

Mr. Gottsponer said that no additional lenders will join the group and that the three remaining banks will compensate for Bank of Americas position. He declined to say why Tyson did not choose Bank of America to be the lead arranger.

Tyson plans to use the loan to finance its acquisition of the beef producer IBP Inc.

For reprint and licensing requests for this article, click here.

TRENDING

Consumer banking

20 banks and thrifts with the most assets

The top five banks and thrifts had combined assets of more than $13 trillion as of December 31, 2023.

By Editorial Staff

13m ago
Regulation and compliance

'Through the looking glass': Jamie Dimon sounds off on regulatory burden

The JPMorgan Chase CEO took aim Tuesday at the proposed Basel III endgame rules, hindrances to mergers and bureaucratic burdens. "I would love to have a more productive relationship with regulators, but I think it takes conversation," Dimon said.

By Catherine Leffert

3h ago
Litigation

If Supreme Court sides with CFPB, 'flurry' of litigation moves forward

Many legal experts think the Supreme Court will rule in favor of the Consumer Financial Protection Bureau in a case challenging its funding. Such a ruling would unleash a flurry of litigation that has been on hold pending the outcome of the constitutional challenge.

By Kate Berry

8h ago

MORE FROM AMERICAN BANKER

Consumer banking

20 banks and thrifts with the most assets

The top five banks and thrifts had combined assets of more than $13 trillion as of December 31, 2023.

By Editorial Staff

13m ago
Regulation and compliance

'Through the looking glass': Jamie Dimon sounds off on regulatory burden

The JPMorgan Chase CEO took aim Tuesday at the proposed Basel III endgame rules, hindrances to mergers and bureaucratic burdens. "I would love to have a more productive relationship with regulators, but I think it takes conversation," Dimon said.

By Catherine Leffert

3h ago
Litigation

If Supreme Court sides with CFPB, 'flurry' of litigation moves forward

Many legal experts think the Supreme Court will rule in favor of the Consumer Financial Protection Bureau in a case challenging its funding. Such a ruling would unleash a flurry of litigation that has been on hold pending the outcome of the constitutional challenge.

By Kate Berry

8h ago
Politics

Democrats push back against Corporate Transparency Act ruling

Lawmakers including one of the original sponsors of the Corporate Transparency Act have filed an amicus brief in the appeal against an Alabama court ruling that the law is unconstitutional, which would throw into question Treasury's newly-established beneficial ownership structure.

By Claire Williams

10h ago
Commercial lending

'Credit darling' Webster Financial reports uptick in defaulted loans

The Connecticut bank —a regional traditionally regarded as a cautious lender — said nonperforming loans and leases rose 53% year-over-year. The uptick was in mostly the commercial-and-industrial loan space, although there was one nonperforming commercial real estate loan, executives said.

By Allissa Kline

April 23
Earnings

Zions, Comerica foresee turnaround on loan growth in late 2024

The two regional banks are anticipating that borrower demand will increase in the back half of the year. High interest rates and economic uncertainty have been muting the appetite for borrowing.

By Catherine Leffert

April 23