Paul Hastings has advised Shuanghui International Holdings Ltd. on securing $4 billion in financing for its proposed acquisition of U.S. meat producer Smithfield Foods.
Shuanghui, China’s largest meat processor, has offered $7.1 billion for Richmond, Va.-based Smithfield. The deal is expected to close in the second half of this year, though a potential obstacle has recently emerged in New York hedge fund and Smithfield shareholder Starboard Value, which says it is attempting to arrange a competing offer to Shuanghui’s.
The Chinese company is entering into debt facilities with eight banks: Bank of China Ltd., Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., Credit Agricole Corporate and Investment Bank, DBS Bank Ltd., Natixis, The Royal Bank of Scotland Plc., Standard Chartered Bank (Hong Kong) Ltd., and Industrial & Commercial Bank of China (Asia) Ltd.
For the debt financing, Paul Hastings Hong Kong partners Raymond Li and Vivian Lam, New York partners Michael Chernick and Mario Ippolito, and London partner Garrett Hayes advised Shuanghui on Hong Kong and U.S. law. Troutman Sanders acted on Virginia law matters.
Updated, 9/5/13: This story has been updated to include the role of Allen & Overy Beijing partner Cindy Lo as advisers to the lenders on this financing.