424(b)(2)
33-52649
33-52649-01
INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR
AMENDMENT. THIS PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL
OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY
SALE OF THESE SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER,
SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR
QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH JURISDICTION.
SUBJECT TO COMPLETION DATED MAY 20, 1994
PROSPECTUS SUPPLEMENT
(To Prospectus Dated April 11, 1994)
Preferred Securities
[ConAgra logo]
ConAgra Capital, L.C.
Series B Adjustable Rate Cumulative Preferred Securities
(liquidation preference $25 per security)
guaranteed on a limited basis
to the extent set forth herein by
and exchangeable in certain limited
circumstances for debt securities of
ConAgra, Inc.
-------------
The Series B Adjustable Rate Cumulative Preferred Securities
(the "Series B Preferred Securities") offered hereby are being
issued by ConAgra Capital, L.C., a limited liability company
organized under the laws of Iowa ("ConAgra Capital" or the
"Company"). ConAgra Capital is an indirectly wholly-owned
finance subsidiary of ConAgra, Inc. ("ConAgra") formed solely for
the purpose of issuing preferred and common securities and
lending the proceeds thereof to ConAgra.
The payment of dividends, if and to the extent declared out
of moneys held by ConAgra Capital and legally available therefor,
and payments on liquidation or redemption with respect to the
Series B Preferred Securities are guaranteed on a limited basis
by ConAgra . See "Description of the Limited Guarantee." The
Series B Preferred Securities will entitle holders to receive
cumulative preferential cash dividends accruing from
_______________, 1994, and payable monthly in arrears on the last
day of each calendar month of each year, commencing June 30,
1994. The dividend rate for the dividend periods ending on June
30, July 31 and August 31, 1994 will be % per annum.
Thereafter, the dividend rate on the Series B Preferred
Securities will be equal to % of the Effective Rate (as
defined below) in effect from time to time, but in no event less
than 5.0% or more than 10.5% per annum. The "Effective Rate" for
each monthly dividend period will be the highest of the "Treasury
Bill Rate", the "Ten Year Constant Maturity Rate" and the "Thirty
Year Constant Maturity Rate" determined for the Quarterly Period
(as defined below) in which such dividend period occurs. See
"Certain Terms of the Series B Preferred Securities --
Dividends".
The Series B Preferred Securities are redeemable, at the
option of ConAgra Capital (with ConAgra's consent), in whole or
in part, from time to time, on or after June 30, 1999 at $25 per
security plus accumulated and unpaid dividends to the date fixed
for redemption (the "Applicable Price"), and will be redeemed at
such price from the proceeds of any permanent repayment of
ConAgra Capital's loan to ConAgra of the proceeds from the sale
of the Series B Preferred Securities offered hereby. ConAgra may
at any time after a Tax Event (as defined herein) cause ConAgra
Capital (i) to exchange the Series B Preferred Securities for
Series B Debentures having an aggregate principal amount and
accrued and unpaid interest equal to the Applicable Price and an
interest rate thereon equal to the dividend rate on the Series B
Preferred Securities or (ii) in certain circumstances relating to
the non-deductibility of interest on the Series B Debentures, to
redeem the Series B Preferred Securities at the Applicable Price.
If the Series B Preferred Securities are exchanged for Series B
Debentures, ConAgra has agreed to use its best efforts to have
the Series B Debentures listed on the same exchange on which the
Series B Preferred Securities are listed. See "Certain Terms of
the Series B Preferred Securities" and "Description of the
Preferred Securities--Redemption".
In the event of the liquidation of ConAgra Capital, holders
of Series B Preferred Securities then outstanding will be
entitled to receive for each such Preferred Security a
liquidation preference of $25 plus accumulated and unpaid
dividends to the date of payment, subject to certain limitations.
Prior to June 30, 1999, payment of such liquidation preference
shall be made by distributing to each holder of Series B
Preferred Securities one or more Series B Debentures having an
aggregate principal amount and accrued and unpaid interest equal
to such liquidation preference. See "Certain Terms of the Series
B Preferred Securities" and "Description of the Preferred
Securities - Liquidation Distribution".
For a description of the various contractual backup
undertakings of ConAgra relating to the Preferred Securities, see
"Description of the Preferred Securities - Miscellaneous",
"Description of the Limited Guarantee", "Certain Terms of the
Series B Debentures" and "Description of the Debentures" herein.
ConAgra's obligations under the Limited Guarantee are subordinate
and junior in right of payment to all other liabilities of
ConAgra and its obligations under the Series B Debentures are
subordinated and junior in right of payment to all Senior
Indebtedness (as defined) of ConAgra.
Application has been made to list the Series B Preferred
Securities on the New York Stock Exchange.
________________________________
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION
OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS SUPPLEMENT
OR THE ACCOMPANYING PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
<TABLE>
<CAPTION>
Underwriting
Price to Discounts and Proceeds to
Public (1) Commissions (2) Company
(1)(3)(4)
<S> <C> <C> <C>
Per Preferred $25.00 (3) $25.00
Security ...
Total (4) $ (3) $
.............
<FN>
(1) Plus accrued dividends, if any, from _________________.
(2) ConAgra Capital and ConAgra have agreed to indemnify the
several Underwriters against certain liabilities, including
liabilities under the Securities Act of 1933, as amended.
See "Underwriting".
(3) Because the proceeds of the sale of the Series B Preferred
Securities will be loaned to ConAgra, ConAgra has agreed to
pay to the Underwriters as compensation ("Underwriters'
Compensation") for their arranging the loan of such proceeds
$______ per Series B Preferred Security (or $____________ in
the aggregate); provided that such compensation will be
$______ per Series B Preferred Security sold to certain
institutions. Therefore, to the extent that Series B
Preferred Securities are sold to such institutions, the
actual amount of Underwriters' Compensation will be less
than the amount specified in the preceding sentence. See
"Underwriting".
(4) Expenses of the offering, which are payable by ConAgra, are
estimated to be $___________.
</TABLE>
-------------
The Series B Preferred Securities offered by this Prospectus
Supplement are offered by the Underwriters subject to prior sale,
withdrawal, cancellation or modification of the offer without
notice, to delivery to and acceptance by the Underwriters and to
certain further conditions. It is expected that delivery of
certificates for the Preferred Securities will be made only in
book-entry form through the facilities of The Depository Trust
Company on or about June ____, 1994.
-------------
Smith Barney Shearson Inc. Merrill Lynch & Co.
Dean Witter Reynolds Inc.
A.G. Edwards & Sons, Inc.
Goldman, Sachs & Co.
PaineWebber Incorporated
Salomon Brothers Inc
May ____, 1994
IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY OVER-
ALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE
MARKET PRICE OF THE SERIES B PREFERRED SECURITIES OFFERED HEREBY
AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN
MARKET. SUCH TRANSACTIONS MAY BE EFFECTED ON THE NEW YORK STOCK
EXCHANGE, IN THE OVER-THE-COUNTER MARKET OR OTHERWISE. SUCH
STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.
CONAGRA
ConAgra is a diversified food company operating across the
food chain in three industry segments: Agri-Products, Trading &
Processing, and Prepared Foods.
In the Agri-Products segment, ConAgra is a leading
distributor of crop protection chemicals. ConAgra also
formulates pesticides, produces animal health care products and
markets animal health care products by direct mail. ConAgra is a
producer of formula feed and feed additives; a distributor,
merchandiser, and marketer of fertilizer; and a specialty
retailer with over 200 farm stores and fabric and crafts stores
located principally in agricultural areas.
In the Trading & Processing segment, ConAgra is a leading
U.S. flour miller. ConAgra also mills oats and dry corn;
manufactures brewers malt; packages private label flour, corn
meal, and mixes; markets specialty food ingredients; and
merchandises feed ingredients. ConAgra is a worldwide trader of
grain, oilseeds, fertilizer, edible beans and peas, sulfur, wool
and other commodities. ConAgra has processing and/or trading
operations in Canada, Australia, Europe, Asia and Latin America
as well as in the U.S.
In the Prepared Foods segment, ConAgra is a leading producer
and marketer of frozen prepared foods, shelf-stable prepared
foods, fresh red meats, branded processed red meats, chicken and
turkey products, seafood products, cheese and other dairy
products and potato products. ConAgra markets steaks and other
premium food products by direct mail and manufactures and markets
pet accessories and home sewing products. ConAgra's prepared
food brands include Armour, Chun King Frozen, Banquet, Healthy
Choice, Kid Cuisine, Country Pride, Country Skillet, Monfort,
Pfaelzer, Longmont, Morton, Patio, Taste O'Sea, Decker, Armour
Classics, Golden Star, Webber Farms, World's Fare, Cook's,
Singleton, Hunt's, Wesson, Manwich, Orville Redenbacher's, Peter
Pan, Snack Pack, Swiss Miss, La Choy, Rosarita, Gebhardt,
Butterball, Swift Premium, Eckrich, Treasure Cave, County Line,
Reddi-Wip and Act II.
CONAGRA CAPITAL, L.C.
ConAgra Capital, an indirectly wholly-owned finance
subsidiary of ConAgra, is a limited liability company organized
under the laws of Iowa. ConAgra Capital's principal executive
offices are presently located at One ConAgra Drive, Omaha,
Nebraska 68102-5001, telephone (402) 595-4000. The principal
executive offices of the Managing Members (as defined in the
Prospectus) of ConAgra Capital are presently located at One
ConAgra Drive, Omaha, Nebraska 68102-5001, telephone (402) 595-
4000. ConAgra indirectly owns all of the common interests
("Common Securities") of ConAgra Capital, which Common Securities
are nontransferable. The ConAgra subsidiaries that hold the
Common Securities have unlimited liability for the debts,
obligations and liabilities of ConAgra Capital. ConAgra Capital
exists solely for the purpose of issuing preferred and common
securities and lending the proceeds from the issuance thereof to
ConAgra.
Financial statements of ConAgra Capital will be made
available to the holders of the Series B Preferred Securities as
soon as practicable after the end of ConAgra Capital's fiscal
year.
SERIES A PREFERRED SECURITIES
ConAgra Capital has $100,000,000 aggregate principal amount
of its 9% Series A Cumulative Preferred Securities (the "Series A
Preferred Securities") outstanding entitled to cumulative
preferential cash dividends at an annual rate of 9% of the
liquidation preference of $25 per security, accruing from April
27, 1994, and payable monthly in arrears on the last day of each
calendar month of each year, commencing May 31, 1994. The Series
A Preferred Securities are redeemable, at the option of ConAgra
Capital (with ConAgra's consent), in whole or in part, from time
to time, on or after May 31, 1999 at $25 per security plus
accumulated and unpaid dividends to the date of redemption, and
will be redeemed at such price from the proceeds of any permanent
repayment of the Series A Debentures issued by ConAgra to ConAgra
Capital upon the loan to ConAgra of the proceeds from the sale of
the Series A Preferred Securities. ConAgra may, at any time
after a Tax Event occurring after April 20, 1994, cause ConAgra
Capital (i) to exchange the Series A Preferred Securities for
Series A Debentures or (ii) in certain circumstances relating to
the non-deductibility of interest on the Series A Debentures, to
redeem the Series A Preferred Securities at the Applicable Price.
The Series A Preferred Securities were sold on April 27, 1994 and
are listed on the New York Stock Exchange.
The Series B Preferred Securities and the Series A Preferred
Securities rank pari passu with each other with respect to
dividends, payments under the Limited Guarantee and payments upon
liquidation of the assets of ConAgra Capital. See "Description
of Preferred Securities" and "Description of the Limited
Guarantee" in the Prospectus. The Series B Debentures and the
Series A Debentures rank pari passu with each other and are
subordinate in right of payment to all Senior Indebtedness (as
defined) of ConAgra. See "Description of the Debentures -
Subordination" in the Prospectus.
CERTAIN INVESTMENT CONSIDERATIONS
Prospective purchasers of Series B Preferred Securities
should carefully review the information contained elsewhere in
this Prospectus Supplement and in the Prospectus and should
particularly consider the following matters:
Subordinated Obligations; Additional Leverage Not
Restricted. ConAgra's obligations under the Limited
Guarantee are subordinate and junior in right of payment to
all other liabilities of ConAgra and its obligations under
the Subordinated Indenture are subordinate and junior in
right of payment to all Senior Indebtedness of ConAgra. As
of February 27, 1994, ConAgra had approximately $4,811.7
million of Senior Indebtedness outstanding (inclusive of
current installments and short-term notes payable). Neither
the Limited Guarantee nor the Series B Debentures limit
ConAgra's ability to incur additional Senior Indebtedness or
to issue securities or enter into guarantees that rank pari
passu with the Limited Guarantee and the Series B
Debentures. See "Description of the Limited Guarantee --
Status of the Limited Guarantee" and "Description of the
Debentures -- Subordination" in the Prospectus.
Potential Extension of Payment Period; Certain United
States Federal Income Tax Consequences. ConAgra has the
right under the Series B Debentures to extend interest
payment periods for up to 18 months, and, as a consequence,
monthly dividends on the Series B Preferred Securities can
be deferred by ConAgra Capital (but will continue to
accumulate) during any such extended interest payment
period. If ConAgra exercises this right, ConAgra may not
declare dividends on any shares of its preferred or common
stock, and therefore, the extension of a payment period is,
in the view of ConAgra Capital and ConAgra, remote. See
"Description of the Debentures -- Interest" in the
Prospectus. In addition, if ConAgra Capital fails to pay
dividends on the Series B Preferred Securities for 18
consecutive monthly dividend periods, the holders of a
majority of the Series B Preferred Securities, together with
the holders of any other preferred securities in ConAgra
Capital having the right to vote for the appointment of a
trustee in such event, acting as a single class, will be
entitled to appoint a trustee to enforce ConAgra Capital's
rights under the Series B Debentures against ConAgra,
enforce ConAgra's obligations under the Limited Guarantee
and pay dividends on the Series B Preferred Securities. See
"Description of Preferred Securities -- Voting Rights" in
the Prospectus.
Should an extended interest payment period occur,
beneficial owners of Series B Preferred Securities will be
required to include interest accruing on the Series B
Debentures in gross income for U.S. federal income tax
purposes in advance of the receipt of cash, and any
beneficial owners who dispose of Series B Preferred
Securities prior to the record date for payment of dividends
following such period will have included such interest in
gross income but will not receive cash related thereto from
ConAgra Capital or ConAgra. See "Certain United States
Federal Income Tax Consequences -- Potential Extension of
Payment Period" in the Prospectus.
Redemption Upon the Occurrence of Certain Tax Events.
Upon the occurrence of a Tax Event that would result in the
non-deductibility by ConAgra of interest on the Series B
Debentures even if the Series B Debentures were exchanged
for the Series B Preferred Securities, ConAgra would have
the right to redeem the Series B Preferred Securities at $25
per security plus accumulated and unpaid dividends to the
date fixed for redemption, but without a premium. See
"Certain Terms of the Series B Preferred Securities" and
"Description of the Preferred Securities--Redemption".
SELECTED FINANCIAL DATA OF CONAGRA
The financial information set forth below has been derived
from the audited and unaudited consolidated financial statements
of ConAgra. The information should be read in connection with,
and is qualified in its entirety by reference to, ConAgra's
financial statements and notes thereto incorporated by reference
herein. The interim data reflect all adjustments, consisting of
only normal recurring adjustments, which, in the opinion of the
management of ConAgra, are necessary to present fairly such
information for the interim periods. The results of operations
for the nine month periods presented are not necessarily
indicative of the results expected for a full year or any other
interim period.
<TABLE>
<CAPTION>
Nine Months For the Fiscal
Ended February Year Ended May
1994 1993 1993 1992 1991(
1)
(amounts in millions, except ratio
data)
<S> <C> <C> <C> <C> <C>
Income statement
data:
Net sales $17,623 $16,14 $21,51 $21,2 $20,1
.8 0.8 9.1 19.0 77.4
Costs of goods sold 15,380. 13,980 18,640 18,19 17,44
9 .9 .4 5.0 9.0
Selling,
administrative & 1,545.7 1,509. 2,014. 2,136 1,874
general expense 6 3 .3 .9
Interest expense 194.7 204.6 258.4 317.5 309.8
Equity in earnings
of affiliates 4.6 18.9 25.4 17.5 13.0
Income before
income taxes and
cumulative effect 507.1 464.6 631.4 587.7 556.7
of accounting
change
Income taxes
201.8 176.2 239.9 215.3 224.7
Net income before
cumulative effect 305.3 288.4 391.5 372.4 332.0
of accounting
change
Cumulative effect
of accounting
change(2) - (121.2 (121.2 - -
) )
Net income 305.3 167.2 270.3 372.4 332.0
Less preferred
dividends 18.0 18.0 24.0 24.5 19.5
Net income
available to common $ $ $ $ $
__ ____ ___ __ ___
stock 287.3 149.2 246.3 347.9 312.5
_____ _____ _____ _____ _____
Balance sheet data
at period end:
Cash and cash $ 76.2 $ 99.2 $ $ $721.
equivalents 257.0 354.8 9
Working capital 164.8 301.2 214.1 289.9 352.2
Property, plant and 2,524.8 2,314. 2,388. 2,276 2,215
equipment, net 8 2 .8 .4
Total assets 11,781. 10,904 9,988. 9,758 9,852
7 .5 7 .7 .4
Short-term notes
payable and current 2,737.3 2,078. 710.1 390.3 810.6
installments of 2
long-term debt
Senior long-term 1,308.4 1,553. 1,393. 1,694 1,886
debt 2 2 .4 .8
Subordinated debt 766.0 766.0 766.0 430.0 430.0
Preferred shares
subject to mandatory 355.6 355.9 355.9 356.0 356.1
redemption
Common 2,129.1 2,010. 2,054. 2,232 1,933
stockholders' equity 9 5 .3 .2
Other data:
Capital $ 249.4 $ $ $ $
expenditures 206.5 341.0 369.6 414.9
Depreciation and 272.7 259.3 348.7 319.3 285.2
amortization
Ratio of earnings
to combined fixed 2.6x 2.5x 2.5x 2.2x 2.2x
charges and
preferred stock
dividends
<FN>
(1) In August 1990 Beatrice Company became a wholly-owned subsidiary of
ConAgra.
(2) One-time cumulative effect of change in accounting for nonpension
postretirement benefits.
</TABLE>
USE OF PROCEEDS
The proceeds from the offering (prior to deducting
Underwriters' Compensation and estimated expenses) will be
$____________. The proceeds from the sale of the Series B
Preferred Securities will be loaned to ConAgra to be used for
general corporate purposes, including the reduction of
outstanding borrowings under short-term credit facilities.
Accordingly, ConAgra has agreed to pay the Underwriters'
Compensation to the Underwriters, as set forth in Note (3) on the
cover page of this Prospectus Supplement.
CAPITALIZATION
The following table sets forth the unaudited summary of
short-term obligations and capitalization of ConAgra and its
consolidated subsidiaries at February 27, 1994 and as adjusted to
give effect to the sale of the Series B Preferred Securities
offered hereby and the application of the proceeds therefrom as
described under "Use of Proceeds" herein and the sale of
$100,000,000 of Series A Preferred Securities on April 27, 1994
and the application of the proceeds therefrom. The table should
be read in conjunction with ConAgra's consolidated financial
statements and notes thereto and other financial data
incorporated by reference herein. See "Incorporation of Certain
Documents by Reference" in the accompanying Prospectus.
February 27, 1994
____________________________
Actual As Adjusted
(in millions)
Short-term obligations
(including notes payable
and current installments
of long-term debt) ........ $2,737.3 $_______
-------- --------
-------- --------
Senior long-term debt
(excluding current
installments) ............. $1,308.4 $1,308.4
Subordinated debt .......... 766.0 766.0
Preferred securities of
consolidated subsidiary ... -0-
Preferred shares subject to
mandatory redemption ...... 355.6 355.6
Common stockholders' equity. 2,129.1 2,129.1
-------- --------
Total capitalization . $4,559.1 $_______
-------- --------
-------- --------
CERTAIN TERMS OF THE SERIES B PREFERRED SECURITIES
General
The following summary of certain terms and provisions of the
Series B Preferred Securities supplements the description of
certain terms and provisions of the Preferred Securities of any
series set forth in the accompanying Prospectus under the heading
"Description of Preferred Securities," to which description
reference is hereby made. Capitalized terms (and the term
"dividends") used in this Prospectus Supplement shall have the
meanings ascribed to them in the Prospectus unless otherwise
defined in this Prospectus Supplement. The Series B Preferred
Securities constitute a series of Preferred Securities in ConAgra
Capital, which Preferred Securities may be issued from time to
time in one or more series with such designations, dividend
rights, liquidation value per security, redemption provisions,
voting rights and other rights, preferences, privileges,
limitations and restrictions as are established by the Articles
of Organization of ConAgra Capital (the "Certificate"), the
Operating Agreement of ConAgra Capital (the "Agreement") and
written action (the "Resolutions") adopted, or to be adopted, by
the Subsidiaries, in their capacity as holders of all of ConAgra
Capital's common interests (the "Managing Members"). The summary
of certain terms and provisions of the Series B Preferred
Securities set forth below does not purport to be complete and is
subject to, and qualified in its entirety by reference to, the
Certificate, the Agreement and the Resolutions adopted by the
Managing Members establishing the rights, preferences,
privileges, limitations and restrictions relating to the Series B
Preferred Securities. References to the Resolutions are
qualified in their entirety by reference to the text of the
Resolutions, which will be substantially in the form filed as an
exhibit to the Registration Statement of which this Prospectus
Supplement forms a part.
Dividends
Dividends on the Series B Preferred Securities will be
cumulative, will accrue from __________________, 1994 and will be
payable monthly in arrears on the last day of each calendar month
of each year, commencing June 30, 1994, when, as and if declared
by the Managing Members, except as otherwise described under
"Description of Preferred Securities -- Dividends" in the
accompanying Prospectus, to holders of record on the Business Day
immediately preceding the relevant payment date. ConAgra Capital
may only pay dividends on the Series B Preferred Securities to
the extent it has funds legally available to make such payments.
See "Description of Preferred Securities -- Dividends" in the
accompanying Prospectus.
The dividend rate from and including June , 1994, to and
including August 31, 1994 will be % per annum. The dividend
rate for each monthly dividend period thereafter will be the rate
per annum equal to the Applicable Rate (as defined below) in
effect for the Quarterly Period (as defined below) in which such
dividend period occurs.
Except as provided below in this paragraph, the "Applicable
Rate" for any Quarterly Period will be equal to % of the
Effective Rate (as defined below), but not less than 5.0% per
annum, or more than 10.5% per annum. The "Effective Rate" for
any Quarterly Period will be equal to the highest of the Treasury
Bill Rate, the Ten Year Constant Maturity Rate and the Thirty
Year Constant Maturity Rate (each as defined below) for such
Quarterly Period. In the event that the Company determines in
good faith that for any reason:
(i) any one of the Treasury Bill Rate, the Ten Year
Constant Maturity Rate or the Thirty Year Constant Maturity
Rate cannot be determined for any Quarterly Period, then the
Effective Rate for such Quarterly Period will be equal to
the higher of whichever two of such rates can be so
determined;
(ii) only one of the Treasury Bill Rate, the Ten Year
Constant Maturity Rate or the Thirty Year Constant Maturity
Rate can be determined for any Quarterly Period, then the
Effective Rate for such Quarterly Period will be equal to
whichever such rate can be so determined; or
(iii) none of the Treasury Bill Rate, the Ten Year
Constant Maturity Rate or the Thirty Year Constant Maturity
Rate can be determined for any Quarterly Period, then the
Effective Rate for the preceding Quarterly Period will be
continued for such Quarterly Period.
Except as described below in this paragraph, the "Treasury
Bill Rate" for each Quarterly Period will be the arithmetic
average of the two most recent weekly per annum market discount
rates (or the one weekly per annum market discount rate, if only
one such rate is published during the relevant Calendar Period
(as defined below)) for three-month U.S. Treasury bills, as
published weekly by the Federal Reserve Board (as defined below)
during the Calendar Period immediately preceding the last ten
calendar days preceding the Quarterly Period for which the
dividend rate on the Series B Preferred Securities is being
determined. In the event that the Federal Reserve Board does not
publish such a weekly per annum market discount rate during any
such Calendar Period, then the Treasury Bill Rate for such
Quarterly Period will be the arithmetic average of the two most
recent weekly per annum market discount rates (or the one weekly
per annum market discount rate, if only one such rate is
published during the relevant Calendar Period) for three-month
U.S. Treasury bills, as published weekly during such Calendar
Period by any Federal Reserve Bank or by any U.S. Government
department or agency selected by the Company. In the event that
a per annum market discount rate for three-month U.S. Treasury
bills is not published by the Federal Reserve Board or by any
Federal Reserve Bank or by any U.S. Government department or
agency during such Calendar Period, then the Treasury Bill Rate
for such Quarterly Period will be the arithmetic average of the
two most recent weekly per annum market discount rates (or the
one weekly per annum market discount rate, if only one such rate
is published during the relevant Calendar Period) for all of the
U.S. Treasury bills then having remaining maturities of not less
than 80 nor more than 100 days, as published during such Calendar
Period by the Federal Reserve Board or, if the Federal Reserve
Board does not publish such rates, by any Federal Reserve Bank or
by any U.S. Government department or agency selected by the
Company. In the event that the Company determines in good faith
that for any reason no such U.S. Treasury bill rates are
published as provided above during such Calendar Period, then the
Treasury Bill Rate for such Quarterly Period will be the
arithmetic average of the per annum market discount rates based
upon the closing bids during such Calendar Period for each of the
issues of marketable non-interest-bearing U.S. Treasury
securities with a remaining maturity of not less than 80 nor more
than 100 days from the date of each such quotation, as chosen and
quoted daily for each business day in New York City (or less
frequently if daily quotations are not generally available) to
the Company by at least three recognized dealers in U.S.
Government securities selected by the Company. In the event that
the Company determines in good faith that for any reason the
Company cannot determine the Treasury Bill Rate for any Quarterly
Period as provided above in this paragraph, the Treasury Bill
Rate for such Quarterly Period will be the arithmetic average of
the per annum market discount rates based upon the closing bids
during such Calendar Period for each of the issues of marketable
interest-bearing U.S. Treasury securities with a remaining
maturity of not less than 80 nor more than 100 days, as chosen
and quoted daily for each business day in New York City (or less
frequently if daily quotations are not generally available) to
the Company by at least three recognized dealers in U.S.
Government securities selected by the Company.
Except as described below in this paragraph, the "Ten Year
Constant Maturity Rate" for each Quarterly Period will be the
arithmetic average of the two most recent weekly per annum Ten
Year Average Yields (as defined below) (or the one weekly per
annum Ten Year Average Yield, if only one such yield is published
during the relevant Calendar Period), as published weekly by the
Federal Reserve Board during the Calendar Period immediately
preceding the last ten calendar days preceding the Quarterly
Period for which the dividend rate on the Series B Preferred
Securities is being determined. In the event that the Federal
Reserve Board does not publish such a weekly per annum Ten Year
Average Yield during such Calendar Period, then the Ten Year
Constant Maturity Rate for such Quarterly Period will be the
arithmetic average of the two most recent weekly per annum Ten
Year Average Yields (or the one weekly per annum Ten Year Average
Yield, if only one such yield is published during the relevant
Calendar Period), as published weekly during such Calendar Period
by any Federal Reserve Bank or by any U.S. Government department
or agency selected by the Company. In the event that a per annum
Ten Year Average Yield is not published by the Federal Reserve
Board or by any Federal Reserve Bank or by any U.S. Government
department or agency during such Calendar Period, then the Ten
Year Constant Maturity Rate for such Quarterly Period will be the
arithmetic average of the two most recent weekly per annum
average yields to maturity (or the one weekly per annum average
yield to maturity, if only one such yield is published during the
relevant Calendar Period) for all of the actively traded
marketable U.S. Treasury fixed interest rate securities (other
than Special Securities (as defined below)) then having remaining
maturities of not less than eight nor more than twelve years, as
published during such Calendar Period by the Federal Reserve
Board or, if the Federal Reserve Board does not publish such
yields, by any Federal Reserve Bank or by any U.S. Government
department or agency selected by the Company. In the event that
the Company determines in good faith that for any reason the
Company cannot determine the Ten Year Constant Maturity Rate for
any Quarterly Period as provided above in this paragraph, then
the Ten Year Constant Maturity Rate for such Quarterly Period
will be the arithmetic average of the per annum average yields to
maturity based upon the closing bids during such Calendar Period
for each of the issues of actively traded marketable U.S.
Treasury fixed interest rate securities (other than Special
Securities) with a final maturity date not less than eight nor
more than twelve years from the date of each such quotation, as
chosen and quoted daily for each business day in New York City
(or less frequently if daily quotations are not generally
available) to the Company by at least three recognized dealers in
U.S. Government securities selected by the Company.
Except as described below in this paragraph, the "Thirty
Year Constant Maturity Rate" for each Quarterly Period will be
the arithmetic average of the two most recent weekly per annum
Thirty Year Average Yields (as defined below) (or the one weekly
per annum Thirty Year Average Yield, if only one such yield is
published during the relevant Calendar Period), as published
weekly by the Federal Reserve Board during the Calendar Period
immediately preceding the last ten calendar days preceding the
Quarterly Period for which the dividend rate on the Series B
Preferred Securities is being determined. In the event that the
Federal Reserve Board does not publish such a weekly per annum
Thirty Year Average Yield during such Calendar Period, then the
Thirty Year Constant Maturity Rate for such Quarterly Period will
be the arithmetic average of the two most recent weekly per annum
Thirty Year Average Yields (or the one weekly per annum Thirty
Year Average Yield, if only one such yield is published during
the relevant Calendar Period), as published weekly during such
Calendar Period by any Federal Reserve Bank or by any U.S.
Government department or agency selected by the Company. In the
event that a per annum Thirty Year Average Yield is not published
by the Federal Reserve Board or by any Federal Reserve Bank or by
any U.S. Government department or agency during such Calendar
Period, then the Thirty Year Constant Maturity Rate for such
Quarterly Period will be the arithmetic average of the two most
recent weekly per annum average yields to maturity (or the one
weekly per annum average yield to maturity, if only one such
yield is published during the relevant Calendar Period) for all
of the actively traded marketable U.S. Treasury fixed interest
rate securities (other than Special Securities) then having
remaining maturities of not less than twenty-eight nor more than
thirty years, as published during such Calendar Period by the
Federal Reserve Board or, if the Federal Reserve Board does not
publish such yields, by any Federal Reserve Bank or by any U.S.
Government department or agency selected by the Company. In the
event that the Company determines in good faith that for any
reason the Company cannot determine the Thirty Year Constant
Maturity Rate for any Quarterly Period as provided above in this
paragraph, then the Thirty Year Constant Maturity Rate for such
Quarterly Period will be the arithmetic average of the per annum
average yields to maturity based upon the closing bids during
such Calendar Period for each of the issues of actively traded
marketable U.S. Treasury fixed interest rate securities (other
than Special Securities) with a final maturity date not less than
twenty-eight nor more than thirty years (or, in the absence of
which, having maturities of not less than twenty-five years or,
in the further absence of which, twenty years) from the date of
each such quotation, as chosen and quoted daily for each business
day in New York City (or less frequently if daily quotations are
not generally available) to the Company by at least three
recognized dealers in U.S. Government securities selected by the
Company.
The Treasury Bill Rate, the Ten Year Constant Maturity Rate
and the Thirty Year Constant Maturity Rate will each be rounded
to the nearest five hundredths of a percent.
The Applicable Rate with respect to each Quarterly Period
will be calculated as promptly as practicable by the Company
according to the appropriate method described above. The Company
will cause each Applicable Rate to be published in a newspaper of
general circulation in New York City or to be communicated by a
comparable method (as determined in good faith by the Company)
before the commencement of the Quarterly Period to which it
applies.
As used above, the term "Calendar Period" means a period of
fourteen calendar days; the term "Federal Reserve Board" means
the Board of Governors of the Federal Reserve System; the term
"Quarterly Period" means the three-month period ending November
30, 1994 and each three-month period ending February 28 (or
February 29), May 31, August 31 and November 30 thereafter; the
term "Special Securities" means securities which can, at the
option of the holder, be surrendered at face value in payment of
any Federal estate tax or which provide tax benefits to the
holder and are priced to reflect such tax benefits or which were
originally issued at a deep or substantial discount; the term
"Ten Year Average Yield" means the average yield to maturity for
actively traded marketable U.S. Treasury fixed interest rate
securities (adjusted to constant maturities of ten years); and
the term "Thirty Year Average Yield" means the average yield to
maturity for actively traded marketable U.S. Treasury fixed
interest rate securities (adjusted to constant maturities of
thirty years).
Liquidation Preference
The stated liquidation preference of the Series B Preferred
Securities is $25 per security.
Redemption or Exchange
The Series B Preferred Securities are not redeemable, except
as described below or as described in the accompanying
Prospectus.
The Series B Preferred Securities are redeemable, at the
option of ConAgra Capital and subject to the prior consent of
ConAgra, in whole or in part, from time to time, on or after June
30, 1999, upon not less than 30 nor more than 60 days' notice, at
the redemption price of $25 per interest, plus accumulated and
unpaid dividends (whether or not declared) to the date fixed for
redemption.
Furthermore, ConAgra shall have the right to cause ConAgra
Capital at any time, upon not less than 30 nor more than 60 days'
notice, to redeem the Series B Preferred Securities at the
Applicable Price if ConAgra and ConAgra Capital have been advised
by independent nationally recognized legal counsel that, as a
result of any Tax Event as described in the following paragraph,
there exists more than an insubstantial risk that ConAgra would
be precluded from deducting the interest on the Series B
Debentures for federal income tax purposes even if the Series B
Preferred Securities were exchanged for the Series B Debentures
as described in the following paragraph.
In addition, ConAgra may cause ConAgra Capital at any time,
upon not less than 30 nor more than 60 days' notice, to exchange
the Series B Preferred Securities for Series B Debentures having
an aggregate principal amount and accrued and unpaid interest
equal to the Applicable Price and an adjustable interest rate
thereon equal to the adjustable dividend rate on the Series B
Preferred Securities if ConAgra and ConAgra Capital have been
advised by independent nationally recognized legal counsel that,
as a result of any change after the date of the Prospectus
Supplement in U.S. law (including the enactment or imminent
enactment of any legislation, the publication of any judicial
decisions or regulatory rulings or a change in the official
position or in the interpretation of law or regulations) (a "Tax
Event"), there exists more than an insubstantial risk that
(i) ConAgra will be precluded from deducting the interest on the
Series B Debentures for federal income tax purposes or
(ii) ConAgra Capital is subject to federal income tax with
respect to the interest received on the Series B Debentures.
After the date fixed for any such exchange, (i) the Series B
Preferred Securities will no longer be deemed to be outstanding,
(ii) DTC or its nominee, as the record holder of the Series B
Preferred Securities, will exchange the global certificate or
certificates representing the Series B Preferred Securities for a
registered global certificate or certificates representing the
Series B Debentures to be delivered upon such exchange and (iii)
any certificates representing Series B Preferred Securities not
held by DTC or its nominee will be deemed to represent Series B
Debentures having a principal amount equal to the stated
liquidation preference of such Series B Preferred Securities
until such certificates are presented to ConAgra Capital or its
agent for exchange.
The Limited Guarantee
Under the Limited Guarantee, ConAgra will irrevocably and
unconditionally agree to pay (i) any accumulated and unpaid
dividends which have been theretofore declared on the Series B
Preferred Securities out of funds legally available therefor,
(ii) the redemption price (including all accumulated unpaid
dividends) payable out of funds legally available therefor with
respect to the Series B Preferred Securities called for
redemption by ConAgra Capital and (iii) upon liquidation of
ConAgra Capital, the lesser of (a) the aggregate of the stated
liquidation preference and all accumulated and unpaid dividends
(whether or not declared) to the date of payment and (b) the
amount of assets of ConAgra Capital legally available for
distribution to holders of Series B Preferred Securities in
liquidation. The Limited Guarantee will constitute an unsecured
obligation of ConAgra and will rank (i) subordinate and junior in
right of payment to all other liabilities of ConAgra, (ii) pari
passu with the most senior preferred stock now or hereafter
issued by ConAgra and with any guarantee now or hereafter entered
into by ConAgra in respect of any preferred or preference stock
of any affiliate of ConAgra and (iii) senior to ConAgra's common
stock. See "Description of the Limited Guarantee".
CERTAIN TERMS OF THE SERIES B DEBENTURES
General
The following summary of certain terms and provisions of the
Debentures relating to the Series B Preferred Securities (the
"Series B Debentures") supplements the description of certain
terms and provisions of the Debentures set forth in the
accompanying Prospectus under the heading "Description of the
Debentures," to which description reference is hereby made.
Pursuant to the Subordinated Indenture and a supplemental
indenture thereto, ConAgra will issue Series B Debentures to
ConAgra Capital in an aggregate principal amount equal to
$_________________, such amount being equal to the aggregate
stated liquidation preference of $25 per Series B Preferred
Security issued and sold by ConAgra Capital and the proceeds from
the issuance of ConAgra Capital's Common Securities and related
capital contributions (the "Common Interest Payments").
The entire principal amount of the Series B Debentures will
become due and payable, together with any accrued and unpaid
interest thereon, including Additional Interest, if any, on the
earlier of June 30, 2043 (subject to ConAgra's right to prepay
the Series B Debentures in certain circumstances relating to the
non-deductibility of interest on the Series B Debentures,
exchange the Series B Debentures for new debentures or reborrow
the proceeds from the repayment of the Series B Debentures upon
the terms and subject to the conditions set forth under
"Description of Preferred Securities -- Redemption" in the
accompanying Prospectus) or the date upon which ConAgra Capital
is dissolved, wound up or liquidated. Upon any exchange of the
Series B Preferred Securities for Series B Debentures, (i) the
Series B Debentures will no longer be subject to mandatory
prepayment upon the dissolution, winding up or liquidation of
ConAgra Capital, (ii) the Series B Debentures will not be subject
to an election by ConAgra to exchange the Series B Debentures for
new debentures or to repay the Series B Debentures and reborrow
the proceeds from such repayment, (iii) ConAgra will use its best
efforts to have the Series B Debentures listed on the same
exchange on which the Series B Preferred Securities are listed,
(iv) the Subordinated Indenture or Series B Debentures may,
thereafter, be modified or amended with the consent of the
holders of not less than 66 2/3% in principal amount of the
Debentures at the time outstanding; provided, however, that no
such modification or amendment may, without the consent of the
holder or each Debenture affected thereby, (a) extend the stated
maturity of the principal of any Debenture, or reduce the
principal amount thereof or reduce the rate or extend the time of
payment of interest thereon, or reduce any amount payable on
redemption thereof or change the currency in which the principal
thereof or interest thereon is payable or impair the right to
institute suit for the enforcement of any payment on any
Debenture when due or (b) reduce the aforesaid percentage in
principal amount of Debentures of any series the consent of the
holders of which is required for any such modification, (v)
ConAgra's obligation to pay Additional Interest (other than
Additional Interest, if any, accrued and unpaid to such date of
exchange) shall cease, and (vi) the provisions described under
"Description of the Indentures--Events of Default" rather than
those described under "Description of Debentures--Events of
Default" shall apply.
Prepayment
The Series B Debentures may not be prepaid, except as
described below or as described in the accompanying Prospectus.
The Series B Debentures may be prepaid at the option of ConAgra,
without premium or penalty, in whole or in part (together with
accrued but unpaid interest, including Additional Interest, if
any, on the portion being prepaid) at any time on or after June
30, 1999 or earlier in certain circumstances relating to the non-
deductibility of interest on the Series B Debentures.
Interest
The Series B Debentures will bear interest at an annual rate
equal to ___% from June , 1994 to and including August 31,
1994 and will bear interest for each monthly interest period
thereafter at a rate per annum equal to the Applicable Rate in
effect for the Quarterly Period in which such interest period
occurs. See "Certain Terms of the Series B Preferred Securities
-- Dividends".. Such interest will be payable on the last day of
each calendar month of each year, commencing June 30, 1994.
Registrar, Transfer Agent and Paying Agent
Chemical Bank will act as registrar, transfer agent and
paying agent of the Series B Preferred Securities.
CERTAIN UNITED STATES FEDERAL INCOME TAX CONSEQUENCES
THE FOLLOWING DISCUSSION SUPPLEMENTS THE DISCUSSION
CONTAINED IN THE PROSPECTUS UNDER THE HEADING "CERTAIN UNITED
STATES FEDERAL INCOME TAX CONSEQUENCES," WHICH DISCUSSION IS
HEREBY INCORPORATED BY THIS REFERENCE AND SHOULD BE READ IN
CONJUNCTION HEREWITH. UNLESS OTHERWISE INDICATED, THIS SUMMARY
DEALS ONLY WITH INITIAL HOLDERS WHO PURCHASE THE PREFERRED
SECURITIES AT THE ORIGINAL OFFERING PRICE.
Exchange of the Preferred Securities for Debentures of ConAgra
Under certain circumstances as fully described under
the caption "Certain Terms of the Series B Preferred Securities--
Redemption or Exchange" in this Prospectus Supplement, ConAgra
Capital may distribute the Series B Debentures in exchange for
the Series B Preferred Securities. Such an exchange will be
treated as a non-taxable exchange to each Securityholder whose
only interest in ConAgra Capital is the Series B Preferred
Securities and will result in such Securityholder receiving an
aggregate tax basis in the Series B Debentures equal to such
Securityholder's aggregate tax basis in its Series B Preferred
Securities. Such Securityholder's holding period in the Series B
Debentures so received in exchange for Series B Preferred
Securities will include the period for which the Series B
Preferred Securities were held by the Securityholder.
Potential Extension of Payment Period
Under the terms of the Series B Debentures, ConAgra may
be permitted to extend the interest payments period up to 18
months. The interest payments on the Series B Debentures will,
therefore, be treated as "original issue discount" under Treasury
Regulations. Thus, after the exchange of Series B Preferred
Securities for Series B Debentures, holders of the Series B
Debentures will be required to include the interest on the Series
B Debentures in income as it accrues, in accordance with a
constant yield method based on a compounding of interest, before
the receipt of the interest. The holder's tax basis in the
Series B Debentures will be increased by accrued interest
previously included as income by the holder and reduced by the
payment of such interest.
Sale, Exchange or Retirement of the Series B Debentures
Upon the sale, exchange or retirement of a Series B
Debenture, a holder will recognize taxable gain or loss equal to
the difference between the amount realized on the sale, exchange
or retirement and such holder's adjusted tax basis in the Series
B Debenture. Subject to the discussion below concerning market
discount and bond premium, such gain or loss will be capital gain
or loss.
Market Discount and Bond Premium
Holders other than initial purchasers who acquire the
Series B Preferred Securities at the original offering price may
be considered to have acquired the Series B Debentures with
market discount, acquisition premium or amortizable bond premium.
Such holders are advised to consult their own tax advisors as to
the income tax consequences of the purchase, ownership and
disposition of the Series B Debentures.
United States Alien Holders
Under present United States federal income tax law:
(i) payments of principal or interest by ConAgra on
the Series B Debentures to any holder who or which is a United
States Alien Holder will not be subject to United States federal
withholding tax; provided that (a) the beneficial owner of the
Series B Debentures does not actually or constructively own 10%
or more of the total combined voting power of all classes of
stock of ConAgra entitled to vote, (b) the beneficial owner of
the Series B Debentures is not a controlled foreign corporation
that is related to ConAgra through stock ownership, and (c)
either (A) the beneficial owner of the Series B Debentures
certifies to ConAgra or its agent, under penalties of perjury,
that it is not a United States holder and provides its name and
address or (B) a securities clearing organization, bank or other
financial institution that holds customers' securities in the
ordinary course of its trade or business (a "Financial
Institution") and holds the Series B Debentures certifies to
ConAgra or its agent under penalties of perjury that such
statement has been received from the beneficial owner by it or by
a Financial Institution between it and the beneficial owner and
furnishes ConAgra or its agent with a copy thereof; and
(ii) a United States Alien Holder of a Series B
Debenture will not be subject to United States federal
withholding tax on any gain realized upon the sale or other
disposition of Series B Debentures.
UNDERWRITING
Under the terms and subject to the conditions of the
Underwriting Agreement dated ________, 1994, each Underwriter
named below has severally agreed to purchase from the Company,
and the Company has agreed to sell to such Underwriter, the
number of Series B Preferred Securities set forth opposite the
name of such Underwriter below.
Number of
Series B
Underwriters Preferred Securities
Smith Barney Shearson Inc. . . . . . . . .
Merrill Lynch, Pierce, Fenner & Smith
Incorporated . . . . . . . . . . . .
Dean Witter Reynolds Inc. . . . . . . . .
A.G. Edwards & Sons, Inc. . . . . . . . .
Goldman, Sachs & Co. . . . . . . . . . . .
PaineWebber Incorporated . . . . . . . . .
Salomon Brothers Inc . . . . . . . . . . .
____________
Total . . . . . . . . . . . . .
============
The Underwriters are obligated to take and pay for the total
number of Series B Preferred Securities offered hereby if any
such Series B Preferred Securities are purchased. In the event
of default by any Underwriter, the Underwriting Agreement
provides that, in certain circumstances, purchase commitments of
the non-defaulting Underwriters may be increased or the
Underwriting Agreement may be terminated.
The Underwriters have advised the Company that they propose
initially to offer the Series B Preferred Securities to the
public at the Price to Public set forth on the cover page of this
Prospectus Supplement, and to certain dealers at a price that
represents a concession not in excess of $.____ per Series B
Preferred Security ($.____ per Series B Preferred Security sold
to certain institutions). The Underwriters may allow, and such
dealers may reallow, a concession not in excess of $.____ per
Series B Preferred Security ($.____ per Series B Preferred
Security sold to certain institutions) to certain other dealers.
After the Series B Preferred Securities are released for sale to
the public, the public offering price and such concessions may be
changed by the Underwriters.
Because the proceeds of the sale of the Series B Preferred
Securities will be loaned to ConAgra, ConAgra has agreed to pay
to the Underwriters as compensation ("Underwriters'
Compensation") for their arranging the loan of such proceeds the
amount per Series B Preferred Security set forth on the cover
page of this Prospectus Supplement (subject to the proviso set
forth therein).
The Underwriters have in the past provided, and may in the
future provide, investment banking services to ConAgra, the
Company and certain of their affiliates.
The Underwriting Agreement provides that ConAgra and the
Company will indemnify the several Underwriters against certain
liabilities, including liabilities under the Securities Act of
1933, and to make certain contributions in respect thereof.
ConAgra and the Company have agreed, during the period
beginning on the date of the Underwriting Agreement and
continuing to and including the date 90 days after the closing
date for the purchase of the Series B Preferred Securities not to
offer, sell, contract to sell or otherwise dispose of any Series
B Preferred Securities, any preferred stock or any other
securities (including any backup undertakings) of ConAgra or any
Preferred Securities or any other securities of the Company, in
each case that are substantially similar to the Series B
Preferred Securities, or any securities convertible into or
exchangeable for the Series B Preferred Securities or such
substantially similar securities of either ConAgra or the
Company, without the prior written consent of Smith Barney
Shearson Inc.
Prior to this offering, there has been no public market for
the Series B Preferred Securities. In order to meet one of the
requirements for listing the Series B Preferred Securities on the
New York Stock Exchange, the Underwriters will undertake to sell
lots of 100 or more Series B Preferred Securities to a minimum of
400 beneficial holders.
VALIDITY OF SECURITIES
The validity of the Series B Preferred Securities is being
passed upon for ConAgra and the Company by Dickinson, Mackaman,
Tyler & Hagen, P.C.
The validity of the Series B Debentures is being passed upon
for ConAgra and the Company by McGrath, North, Mullin & Kratz,
P.C.
Tax matters described under "Certain United States Federal
Income Tax Consequences" in this Prospectus Supplement are being
passed upon by Davis Polk & Wardwell.
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PROSPECTUS [ConAgra Logo]
$450,000,000
CONAGRA CAPITAL, L.C.
Preferred Securities
and
CONAGRA, INC.
Debt Securities
______________________
ConAgra, Inc. ("ConAgra") from time to time may offer its
debt securities (the "Debt Securities"), at an aggregate initial
offering price not to exceed the equivalent of $450,000,000, in
separate series in amounts and prices and on terms to be
determined at the time of sale. The Debt Securities may be
denominated in U.S. dollars or in any other currency, including
composite currencies such as the European Currency Unit, as may
be designated by ConAgra (the "Specified Currency"). Debt
Securities may be sold for U.S. dollars or any other currency,
including composite currencies and the principal of and any
interest on Debt Securities may likewise be payable in U.S.
dollars, or in any other currency, including composite
currencies, in each case, as ConAgra specifically designates.
ConAgra Capital, L.C. ("ConAgra Capital"), an indirectly
wholly-owned finance subsidiary of ConAgra, may also offer from
time to time its preferred interests ("Preferred Securities"), in
one or more series, at an aggregate initial public offering price
not to exceed $450,000,000 at the time of sale. Any issue of
Preferred Securities shall correspondingly reduce the amount of
Debt Securities available for offer and sale hereunder. The
payment of distributions (herein referred to as "dividends"), if
and to the extent declared out of moneys held by ConAgra Capital
and legally available therefor, and to the extent funds are
legally available therefor payments on liquidation or redemption
with respect to the Preferred Securities are guaranteed on a
limited basis (the "Limited Guarantee") by ConAgra to the extent
set forth herein. No portion of the dividends received by a
holder of the Preferred Securities will be eligible for the
dividends received deduction for federal income tax purposes.
The Limited Guarantee will rank subordinate and junior in right
of payment to all other liabilities of ConAgra and pari passu to
the most senior preferred stock issued by ConAgra and senior to
ConAgra's common stock. See "ConAgra", "Description of Preferred
Securities--Miscellaneous," "Description of the Limited
Guarantee" and "Description of the Debentures" for a description
of the various contractual backup obligations of ConAgra relating
to the Preferred Securities.
Specific terms of the securities in respect of which this
Prospectus is being delivered ("Offered Securities") will be set
forth in an accompanying Prospectus Supplement ("Prospectus
Supplement"), together with the terms of the offering of the
Offered Securities, the initial price thereof and the net
proceeds from the sale thereof. The Prospectus Supplement will
set forth with regard to the particular Offered Securities,
without limitation, the following: (i) in the case of Debt
Securities, the specific designation, aggregate principal amount,
authorized denomination, maturity, rate (which may be fixed or
variable) or method of calculation of interest and dates for
payment thereof, and any exchangeability, conversion, redemption,
prepayment or sinking fund provisions and any listing on a
securities exchange, and (ii) in the case of Preferred
Securities, the designation, number of shares or fractional
interests therein, liquidation preference per security, initial
public offering price, dividend rate (or method of calculation
thereof), dates on which dividends shall be payable and dates
from which dividends shall accrue, any voting rights, any
redemption or exchange provisions, any other rights, preferences,
privileges, limitations and restrictions relating to the
Preferred Securities of a specific series, the terms upon which
the proceeds of the sale of the Preferred Securities will be
loaned to ConAgra, and any listing on a securities exchange.
________________
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION
OR ANY STATE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.
_______________
The Offered Securities may be offered directly, through
agents designated from time to time, through dealers or through
underwriters. Such agents or underwriters may act alone or with
other agents or underwriters. See "Plan of Distribution". Any
such agents, dealers or underwriters are set forth in the
Prospectus Supplement. If an agent of ConAgra or a dealer or
underwriter is involved in the offering of the Offered
Securities, the agent's commission, dealer's purchase price,
underwriter's discount and net proceeds to ConAgra will be set
forth in, or may be calculated from, the Prospectus Supplement.
Any underwriters, dealers or agents participating in the offering
may be deemed "underwriters" within the meaning of the Securities
Act of 1933.
This Prospectus may not be used to consummate sales of
Offered Securities unless accompanied by a Prospectus Supplement.
_______________
Smith Barney Shearson Inc.
_______________
The date of this Prospectus is April 11, 1994
IN CONNECTION WITH AN OFFERING, THE UNDERWRITERS FOR SUCH
OFFERING MAY OVER-ALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR
MAINTAIN THE MARKET PRICE OF THE OFFERED SECURITIES AT LEVELS
ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET.
SUCH TRANSACTIONS MAY BE EFFECTED ON THE NEW YORK STOCK EXCHANGE,
THE OVER-THE-COUNTER MARKET OR OTHERWISE. SUCH STABILIZING, IF
COMMENCED, MAY BE DISCONTINUED AT ANY TIME.
No dealer, salesman or other person has been authorized to
give any information or to make any representation not contained
or incorporated by reference in this Prospectus or any Prospectus
Supplement, and, if given or made, such information or
representation must not be relied upon as having been authorized
by ConAgra, ConAgra Capital or by any underwriter, agent or
dealer. This Prospectus and any Prospectus Supplement shall not
constitute an offer to sell or a solicitation of an offer to buy
any of the securities offered hereby in any jurisdiction to any
person to whom it is unlawful to make such offer or solicitation
in such jurisdiction. Neither the delivery of this Prospectus
and any Prospectus Supplement nor any sale made thereunder shall,
under any circumstances, create any implication that the
information therein is correct as of any time subsequent to the
date thereof.
_______________
AVAILABLE INFORMATION
ConAgra is subject to the informational requirements of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"),
and in accordance therewith files reports, proxy statements and
other information with the Securities and Exchange Commission
(the "Commission"). The registration statement of which this
Prospectus forms a part, as well as reports, proxy statements and
other information filed by ConAgra, may be inspected and copied
at the public reference facilities maintained by the Commission
at 450 Fifth Street, N.W., Washington, D.C. 20549 and at the
Commission's regional offices at 500 West Madison Street,
Chicago, Illinois 60661-2511 and 7 World Trade Center, New York,
New York 10048. Copies of such material can be obtained at
prescribed rates from the Public Reference Section of the
Commission at 450 Fifth Street, N.W., Washington, D.C. 20549.
Reports and other information herein and therein concerning
ConAgra can also be inspected at the office of the New York Stock
Exchange, 20 Broad Street, New York, New York 10005.
This Prospectus constitutes a part of Registration Statement
on Form S-3 (together with all amendments and exhibits thereto,
the "Registration Statement") filed with the Commission under the
Securities Act of 1933 (the "Securities Act") with respect to the
Offered Securities. This Prospectus does not contain all of the
information set forth in such Registration Statement, certain
parts of which are omitted in accordance with the rules and
regulations of the Commission. Reference is made to such
Registration Statement and to the exhibits relating thereto for
further information with respect to ConAgra and the Offered
Securities. Any statements contained herein concerning the
provisions of any document filed as an exhibit to the
Registration Statement or otherwise filed with the Commission or
incorporated by reference herein are not necessarily complete,
and in each instance reference is made to the copy of such
document so filed for a more complete description of the matter
involved. Each such statement is qualified in its entirety by
such reference.
No separate financial statements of ConAgra Capital have
been included herein. ConAgra and ConAgra Capital do not
consider that such financial statements would be material to
holders of Preferred Securities of ConAgra Capital because
ConAgra Capital is a newly organized special purpose entity, has
no operating history and no independent operations and is not
engaged in, and does not propose to engage in, any activity other
than the issuance of its securities and the lending of the
proceeds thereof to ConAgra. See "ConAgra Capital, L.C.".
ConAgra Capital is a limited liability company organized under
the laws of the state of Iowa and will be managed by certain
indirect wholly-owned subsidiaries of ConAgra, which subsidiaries
beneficially own all of ConAgra Capital's common securities,
which are non-transferable.
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
The following documents, which have been filed with the
Commission, are hereby incorporated by reference:
1. Annual Report on Form 10-K of ConAgra for the fiscal year
ended May 30, 1993; and
2. Quarterly Reports on Form 10-Q of ConAgra for the fiscal
quarters ended August 29, 1993, November 28, 1993 and
February 27, 1994.
All documents filed by ConAgra after the date of this
Prospectus pursuant to Sections 13(a), 13(c), 14 and 15(d) of the
Exchange Act, prior to the termination of the offering of the
Offered Securities offered hereby, shall be deemed to be
incorporated herein by reference and to be a part hereof from the
date of such documents. Any statement contained in a document
incorporated or deemed to be incorporated by reference herein
shall be deemed to be modified or superseded for purposes of this
Prospectus to the extent that a statement contained herein or in
any other subsequently filed document which also is or is deemed
to be incorporated by reference herein modifies or supersedes
such statement. Any such statements as modified or superseded
shall be deemed, except as so modified or superseded, to
constitute a part of this Prospectus.
ConAgra will provide without charge to each person to whom a
copy of this Prospectus is delivered, upon written or oral
request of such person, a copy of any or all of the documents
referred to above which have been or may be incorporated by
reference in this Prospectus (other than certain exhibits to such
documents). Requests for such documents may be made by writing
ConAgra, Inc., One ConAgra Drive, Omaha, Nebraska 68102-5001
(Attention: Corporate Communications Department) or by calling
(402) 595-4157.
THE COMPANY
ConAgra is a diversified food company operating across the
food chain in three industry segments: Agri-Products, Trading &
Processing, and Prepared Foods.
In the Agri-Products segment, ConAgra is a leading
distributor of crop protection chemicals. ConAgra also
formulates pesticides, produces animal health care products and
markets animal health care products by direct mail. ConAgra is a
producer of formula feed and feed additives; a distributor,
merchandiser, and marketer of fertilizer; and a specialty
retailer with over 200 farm stores and fabric and crafts stores
located principally in agricultural areas.
In the Trading & Processing segment, ConAgra is a leading
U.S. flour miller. ConAgra also mills oats and dry corn;
manufactures brewers malt; packages private label flour, corn
meal, and mixes; markets specialty food ingredients; and
merchandises feed ingredients. ConAgra is a worldwide trader of
grain, oilseeds, fertilizer, edible beans and peas, sulfur, wool
and other commodities. ConAgra has processing and/or trading
operations in Canada, Australia, Europe, Asia and Latin America
as well as in the U.S.
In the Prepared Foods segment, ConAgra is a leading producer
and marketer of frozen prepared foods, shelf-stable prepared
foods, fresh red meats, branded processed red meats, chicken and
turkey products, seafood products, cheese and other dairy
products and potato products. ConAgra markets steaks and other
premium food products by direct mail and manufactures and markets
pet accessories and home sewing products. ConAgra's prepared
food brands include Armour, Chun King Frozen, Banquet, Healthy
Choice, Kid Cuisine, Country Pride, Country Skillet, Monfort,
Pfaelzer, Longmont, Morton, Patio, Taste O'Sea, Decker, Armour
Classics, Golden Star, Webber Farms, World's Fare, Cook's,
Singleton, Hunt's, Wesson, Manwich, Orville Redenbacher's, Peter
Pan, Snack Pack, Swiss Miss, La Choy, Rosarita, Gebhardt,
Butterball, Swift Premium, Eckrich, Treasure Cave, County Line,
Reddi-Wip and Act II.
ConAgra's finance businesses provide specialized, self-
financed financial services related to the food industry.
Borrowings of the finance businesses are not guaranteed by
ConAgra. The principal businesses are commodity futures
brokerage, included in the Trading & Processing segment, and
financing, leasing and insurance services for the red meat
business included in the Prepared Foods segment.
Acquisitions have contributed substantially to ConAgra's
sales and earnings growth, both in the years of acquisition and
in subsequent years. Major acquisitions have included United
Agri Products, Banquet Foods, Country Pride Foods, Peavey
Company, Monfort of Colorado, the Morton, Chun King and Patio
frozen food businesses, SIPCO (formerly Swift Independent Packing
Company), the assets of Armour Food Company, 50% of Trident
Seafoods, Pillsbury's grain merchandising business, eight U.S.
flour mills acquired from International Multifoods, Beatrice
Company, the assets of Elders' malt and wool business in
Australia, approximately 91% of Elders' beef business in
Australia, and Golden Valley Microwave Foods. ConAgra
anticipates that it will continue to grow internally and through
acquisitions.
Certain of ConAgra's businesses are subject to significant
variation in performance as a consequence of seasonal, cyclical
or other industry conditions. For example, ConAgra's fertilizer
business is seasonal, with stronger profits expected during the
spring planting season. The poultry industry has traditionally
been cyclical, with margins expanding and contracting as
production contracts and expands. ConAgra's international
trading businesses' results are affected by political, economic
and environmental factors which influence commodity prices and
markets. In the short to intermediate term, ConAgra's reported
earnings can be favorably or unfavorably impacted in a material
way if industry conditions in a number of businesses are either
positive or negative at the same time.
ConAgra's principal executive office is located at One
ConAgra Drive, Omaha, Nebraska 68102-5001, telephone (402) 595-
4000.
CONAGRA CAPITAL
ConAgra Capital, wholly-owned by two indirect wholly-owned
subsidiaries of ConAgra (the "Subsidiaries"), is a limited
liability company organized under the laws of the state of Iowa.
The principal executive offices of ConAgra Capital and its
Managing Members (as defined below) are presently located at One
ConAgra Drive, Omaha, Nebraska 68102-5001, telephone: (402) 595-
4000. The Subsidiaries own all of the common interests ("Common
Securities") of ConAgra Capital, which Common Securities are
nontransferable. The Subsidiaries have unlimited liability for
the debts, obligations and liabilities of ConAgra Capital.
ConAgra Capital exists solely for the purpose of issuing
preferred and common
securities and lending the net proceeds thereof to ConAgra.
Financial statements of ConAgra Capital will be made
available to holders of Preferred Securities annually as soon as
practicable after the end of ConAgra Capital's fiscal year.
ConAgra and ConAgra Capital have entered into an agreement
pursuant to which ConAgra has agreed to guarantee the payment of
any liabilities incurred by ConAgra Capital (other than
obligations to holders of Preferred Securities). The agreement
expressly provides that such agreement is for the benefit of, and
is enforceable by, third parties to whom ConAgra Capital owes
such obligations.
USE OF PROCEEDS
ConAgra intends to add the net proceeds from the sale of
Offered Securities to its general funds, to be used for general
corporate purposes, including working capital, capital
expenditures, the repayment of commercial paper, repayment of
loans under bank credit agreements and repayment of other short
and intermediate term borrowings. Prior to such application,
such net proceeds may be invested in short or intermediate term
securities. Except as may be indicated in the Prospectus
Supplement, no specific determination as to the use of the
proceeds of the Offered Securities in respect to which this
Prospectus is being delivered has been made. ConAgra anticipates
that it will raise additional funds from time to time through
equity or debt financing, including borrowings under its
revolving credit agreements, to finance its businesses worldwide.
ConAgra Capital will loan to ConAgra all proceeds received by
ConAgra Capital from the sale of its Preferred Securities.
RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
The following table sets forth the ratio of earnings to
combined fixed charges and preferred stock dividends for the
periods indicated.
Nine Months
Ended Fiscal Years Ended May
Feb. 27, ------------------------------------------------
-
1994 1993 1992 1991 1990 1989
---------- ---- ---- ---- ---- ----
2.6 2.5 2.2 2.2 2.5 2.4
For the purpose of computing the above ratio of earnings to
combined fixed charges and preferred stock dividends, earnings
consist of income before taxes and fixed charges. Fixed charges,
for the purpose of computing earnings, are adjusted to exclude
interest capitalized and that component of fixed charges
representing ConAgra's proportionate share of the preferred stock
dividend requirement of a 50% owned subsidiary. Fixed charges
include interest on both long and short term debt (whether said
interest is expensed or capitalized and including interest
charged to cost of goods sold), a portion of noncancellable
rental expense representative of the interest factor and
ConAgra's proportionate share of the preferred stock dividend
requirement of a 50% owned subsidiary, excluding that which would
be eliminated in consolidation. Preferred stock dividend
requirements are computed by increasing preferred stock dividends
to an amount representing pre-tax earnings which would be
required to cover such dividend requirements. The ratio is
computed using the amounts for ConAgra as a whole, including its
majority-owned subsidiaries, whether or not consolidated, and its
proportionate shares of any 50% owned subsidiaries whether or not
ConAgra guarantees obligations of these subsidiaries.
DESCRIPTION OF PREFERRED SECURITIES
The following is a summary of certain terms and provisions
of the Preferred Securities of any series. Certain terms and
provisions of the Preferred Securities of a particular series
will be summarized in the Prospectus Supplement relating to the
Preferred Securities of such series. If so indicated in the
Prospectus Supplement, the terms and provisions of the Preferred
Securities of a particular series may differ from the terms set
forth below. The summaries set forth below and in the applicable
Prospectus Supplement address the material terms of the Preferred
Securities of any particular series but do not purport to be
complete and are subject to, and qualified in their entirety by
reference to, the Articles of Organization of ConAgra Capital
(the "Certificate"), the Operating Agreement of ConAgra Capital
(the "Agreement") and the written action adopted, or to be
adopted, by the Subsidiaries, in their capacity as the holders of
all of ConAgra Capital's Common Securities (the "Managing
Members"), establishing the rights, preferences, privileges,
limitations and restrictions relating to the Preferred Securities
of any series or of a particular series. The Certificate and the
Agreement will be substantially in the forms filed as exhibits to
the Registration Statement of which this Prospectus forms a part.
Pursuant to the Certificate, holders of the Preferred Securities
are bound by the Agreement.
General
ConAgra Capital is authorized to issue common securities and
preferred securities. The preferred securities may be issued in
one or more series or classes, with such dividend rights,
liquidation preferences, redemption provisions, voting rights and
other rights, preferences, privileges, limitations and
restrictions as shall be set forth in the Agreement and the
resolutions providing for the issuance thereof adopted by the
Managing Members. All of the Preferred Securities, to be issued
in one or more series or classes, will rank pari passu with each
other with respect to participation in profits and assets.
The Preferred Securities of any series will be issued in
registered form only without dividend coupons. Registration of,
and registration of transfers of, the Preferred Securities of any
series will be by book entry only. The Preferred Securities of
any series will have the dividend rights, rights upon
liquidation, redemption provisions and voting rights set forth
below, unless otherwise provided in the Prospectus Supplement
relating to the Preferred Securities of a particular series.
Reference is made to the Prospectus Supplement relating to the
Preferred Securities of a particular series for specific terms,
including (i) the designation of the Preferred Securities of such
series, (ii) the price at which the Preferred Securities of such
series will be issued, (iii) the dividend rate (or method of
calculation thereof), the dates on which dividends will be
payable and the dates from which dividends shall accrue, (iv) the
voting rights, if any, (v) any redemption or exchange provisions,
which may include any exchange of the Preferred Securities as a
result of changes in or other developments in applicable tax law,
(vi) the stated liquidation preference, (vii) any other rights,
preferences, privileges, limitations and restrictions relating to
the Preferred Securities of such series and (viii) the terms upon
which the proceeds from the sale of the Preferred Securities of
such series will be loaned to ConAgra.
Dividends
Dividends on the Preferred Securities will be cumulative.
Cumulative dividends on any series of Preferred Securities will
accrue from the date specified in the applicable Prospectus
Supplement and will be payable monthly in arrears on the last day
of each calendar month of each year, commencing on the date
specified in the Prospectus Supplement relating to such series.
The dividend rate applicable to the Preferred Securities of
a particular series will the fixed rate per annum specified in
the Prospectus Supplement relating to such series or will be
determined pursuant to the formula specified in such Prospectus
Supplement. The amount of dividends payable for any full monthly
dividend period will be computed on the basis of twelve 30-day
months and a 360-day year and, for any period shorter than a full
monthly dividend period, will be computed on the basis of the
actual number of days elapsed in such period. ConAgra Capital
may only pay dividends to the extent it has funds legally
available to make such payments. See "Description of the Limited
Guarantee" and "Description of the Debentures" below.
Dividends on the Preferred Securities of any series will be
declared by the Managing Members of ConAgra Capital to the extent
that the Managing Members reasonably anticipate that at the time
of payment ConAgra Capital will have, and must be paid by ConAgra
Capital to the extent that at the time of proposed payment it
has, (i) funds legally available for the payment of such
dividends and (ii) cash on hand sufficient to permit such
payments. It is anticipated that ConAgra Capital's funds will be
limited to payments under the debentures (the "Debentures")
issued by ConAgra that will evidence the loans to be made by
ConAgra Capital to ConAgra of the proceeds of (i) Preferred
Securities of each series and (ii) ConAgra Capital's Common
Securities and related capital contributions. See "Description
of the Debentures."
Dividends declared on the Preferred Securities of any series
will be payable to the record holders thereof as they appear on
the register for the Preferred Securities of such series on the
relevant record dates, which will be, unless otherwise specified
in the Prospectus Supplement relating to each such series, one
Business Day (as hereinafter defined) prior to the relevant
payment dates. Subject to any applicable fiscal or other laws
and regulations, each such payment will be made as described
under "Book-Entry-Only Issuance; The Depository Trust Company"
below. In the event that any date on which dividends are payable
on the Preferred Securities of any series is not a Business Day,
then payment of the dividend payable on such date will be made on
the next succeeding day which is a Business Day (and without any
interest or other payment in respect of any such delay) except
that, if such Business Day is in the next succeeding calendar
year, such payment shall be made on the immediately preceding
Business Day, in each case with the same force and effect as if
made on such date. A "Business Day" shall mean any day other
than a day on which banking institutions in The City of New York
are authorized or required by law to close.
Except as described herein and in the Prospectus Supplement
relating to the Preferred Securities of a particular series,
holders of the Preferred Securities of any series will have no
other right to participate in the profits of ConAgra Capital.
Certain Restrictions on ConAgra Capital
If dividends have not been paid in full on the Preferred
Securities of any series, ConAgra Capital shall not:
(i) pay, or declare and set aside for payment, any
dividends on the Preferred Securities of any other series or
any other preferred securities in ConAgra Capital ranking
pari passu with the Preferred Securities of such series as
regards participation in profits of ConAgra Capital
("ConAgra Capital Dividend Parity Securities"), unless the
amount of any dividends declared on any ConAgra Capital
Dividend Parity Securities is paid on ConAgra Capital
Dividend Parity Securities and the Preferred Securities of
such series on a pro rata basis on the date such dividends
are paid on such ConAgra Capital Dividend Parity Securities,
so that
(x) (A) the aggregate amount paid as dividends on
the Preferred Securities of such series bears to (B)
the aggregate amount paid as dividends on ConAgra
Capital Dividend Parity Securities the same ratio as
(y) (A) the aggregate of all accumulated arrears
of unpaid dividends on the Preferred Securities of such
series bears to (B) the aggregate of all accumulated
arrears of unpaid dividends on ConAgra Capital Dividend
Parity Securities;
(ii) pay, or declare and set aside for payment, any
dividends on any securities in ConAgra Capital ranking
junior to the Preferred Securities of such series as to
dividends ("ConAgra Capital Dividend Junior Securities"); or
(iii) redeem, purchase or otherwise acquire any
ConAgra Capital Dividend Parity Securities or ConAgra
Capital Dividend Junior Securities;
until, in each case, such time as all accumulated arrearages of
unpaid dividends on the Preferred Securities of such series shall
have been paid in full for all dividend periods terminating on or
prior to, in the case of clauses (i) and (ii), such payment, and
in the case of clause (iii), the date of such redemption,
purchase or other acquisition. So long as the Preferred
Securities of any series are represented by one or more global
certificates, dividends on such series of Preferred Securities
shall have been paid in full with respect to any dividend payment
date for such series when the amount of dividends payable on such
date has been paid to The Depository Trust Company ("DTC"). See
"Book-Entry-Only Issuance; The Depository Trust Company." As of
the date of this Prospectus, there are no ConAgra Capital
Dividend Parity Securities outstanding.
ConAgra Capital may not consolidate, merge with or into, or
convey, transfer or lease its properties and assets substantially
as an entirety to any corporation or other body, except as
described below. ConAgra Capital may, for purposes of changing
its state of domicile or avoiding tax consequences adverse to
ConAgra or ConAgra Capital or holders of Preferred Securities,
without the consent of the holders of the Preferred Securities of
any series, consolidate or merge with or into a limited liability
company or limited partnership organized as such under the laws
of any state of the United States of America; provided that (i)
such successor entity either (x) expressly assumes all of the
obligations of ConAgra Capital under each series of Preferred
Securities then outstanding or (y) substitutes for the Preferred
Securities then outstanding other securities having substantially
the same terms as the Preferred Securities then outstanding (the
"Successor Securities") so long as the Successor Securities rank,
with respect to participation in the profits or assets of the
successor entity, at least as senior as the respective Preferred
Securities rank with respect to participation in the profits or
assets of ConAgra Capital, (ii) ConAgra expressly acknowledges
such successor as the holder of all of the Debentures relating to
each series of Preferred Securities then outstanding, (iii) such
merger or consolidation does not cause any series of Preferred
Securities then outstanding to be delisted by any national
securities exchange or other organization on which such series is
then listed, (iv) holders of outstanding Preferred Securities do
not suffer any adverse tax consequences as a result of such
merger or consolidation, (v) such merger or consolidation, does
not cause any series of Preferred Securities to be downgraded by
any "nationally recognized statistical rating organization," as
that term is defined by the Commission for purposes of Rule
436(g)(2) under the Securities Act and (vi) following such merger
or consolidation ConAgra and such successor limited liability
company or limited partnership are in compliance with the
Investment Company Act of 1940, as amended.
The Managing Members are authorized and directed to conduct
their affairs and to operate ConAgra Capital in such a way that
ConAgra Capital would not be deemed to be an "investment company"
for purposes of the Investment Company Act of 1940, as amended.
In this connection, the Managing Members are authorized to take
any action not inconsistent with applicable law, the Certificate
or the Agreement which they determine in their discretion to be
necessary or desirable for such purposes.
Redemption
The Preferred Securities of a series will be redeemable at
the option of ConAgra Capital and subject to the prior consent of
ConAgra, in whole or in part from time to time, on or after the
date specified in the Prospectus Supplement relating to such
series, at the stated liquidation preference per security for
such series, plus accumulated and unpaid dividends (whether or
not declared) (the "Redemption Price") to the date fixed for
redemption (the "Redemption Date"). The Preferred Securities of
any series may also be redeemed at the option of ConAgra on such
terms and conditions as may be set forth in the Prospectus
Supplement relating to such series.
In the event that fewer than all the outstanding Preferred
Securities of a particular series are to be redeemed, except as
described below, the Preferred Securities of such series to be
redeemed will be selected as described under "Book-Entry-Only
Issuance; The Depository Trust Company" below.
The Preferred Securities of any series will also be redeemed
at the Redemption Price with the proceeds from the repayment by
ConAgra when due or prepayment by ConAgra as described under
"Description of the Debentures -- Optional Prepayment" of the
Debentures relating to such series, subject to the provisions in
clause (iii) under "Certain Restrictions on ConAgra Capital"
above. Notwithstanding the foregoing, the Preferred Securities
of any series will not be redeemed when the Debentures relating
to the Preferred Securities of such series are due if ConAgra
elects to exchange such Debentures for new debentures or to repay
such Debentures and reborrow the proceeds from such repayment nor
will such Preferred Securities be redeemed if such Debentures are
prepaid as described under "Description of the Debentures --
Optional Prepayment" and ConAgra elects to reborrow the proceeds
from such prepayment; provided that ConAgra may not so elect to
exchange any such Debentures or to reborrow the proceeds from any
repayment or prepayment of such Debentures, unless at the time of
each such exchange or reborrowing ConAgra Capital owns all of
such Debentures and, as determined in the judgment of the
Managing Members and ConAgra Capital's financial advisor
(selected by the Managing Members and who shall be unaffiliated
with ConAgra and shall be among the 30 largest investment banking
firms, measured by total capital, in the United States at the
time new debentures are to be issued in connection with such
exchange or reborrowing), (a) ConAgra is not bankrupt, insolvent
or in liquidation, (b) no event of default or event which with
the giving of notice or the passage of time would constitute an
event of default on any debenture pertaining to Preferred
Securities of any series has occurred and is continuing, (c)
ConAgra has made timely payments on the repaid Debentures for the
immediately preceding 18 months, (d) ConAgra Capital is not in
arrears on payments of dividends on the Preferred Securities of
such series, (e) there is then no present reason to believe
ConAgra will be unable to make timely payment of principal and
interest on such new debentures, (f) such new debentures are
being issued on terms, and under circumstances, that are
consistent with those which a lender would then require for a
loan to an unrelated party, (g) such new debentures are being
issued at a rate sufficient to provide payments equal to or
greater than the amount of distributions required under the
Preferred Securities of such series, (h) such new debentures are
being issued for a term that is consistent with market
circumstances and ConAgra's financial condition, (i) immediately
prior to issuing such new debentures, the senior unsecured long-
term debt of ConAgra is (or if no such debt is outstanding, would
be) rated not less than BBB (or the equivalent) by Standard &
Poor's Corporation and Baa1 (or the equivalent) by Moody's
Investors Service, Inc. (or if either of such rating
organizations is not then rating ConAgra's senior unsecured long-
term debt, the equivalent of such rating by any other "nationally
recognized statistical rating organization," as that term is
defined by the Commission for purposes of Rule 436(g)(2) under
the Securities Act) and any subordinated unsecured long-term debt
of ConAgra or, if there is no such debt then outstanding, the
Preferred Securities of such series, are rated not less than BBB-
(or the equivalent) by Standard & Poor's Corporation or Baa3 (or
the equivalent) by Moody's Investors Service, Inc. or the
equivalent of either such rating by any other "nationally
recognized statistical rating organization" and (j) such new
debentures will have a final maturity no later than the one
hundredth anniversary of the issuance of the Preferred Securities
of the first series issued.
ConAgra Capital may not redeem any Preferred Securities of
any series unless all accumulated arrearages of unpaid dividends
have been paid on all Preferred Securities of all series for all
monthly dividend periods terminating on or prior to the date of
redemption.
If ConAgra Capital gives a notice of redemption in respect
of Preferred Securities of a particular series, then, by 12:00
noon, New York time, on the applicable Redemption Date, ConAgra
Capital will irrevocably deposit with DTC funds sufficient to pay
the applicable Redemption Price and will give DTC irrevocable
instructions and authority to pay the Redemption Price to the
holders thereof. See "Book-Entry-Only Issuance; The Depository
Trust Company." If notice of redemption shall have been given
and funds deposited as required, then upon the date of such
deposit, all rights of holders of such Preferred Securities of a
series so called for redemption will cease, except the right of
the holders of such securities to receive the Redemption Price,
but without interest, and such securities will cease to be
outstanding. In the event that any date on which any payment in
respect of the redemption of Preferred Securities of any series
is not a Business Day, then payment of the Redemption Price
payable on such date will be made on the next succeeding day
which is a Business Day (and without any interest or other
payment in respect of any such delay), except that, if such
Business Day falls in the next calendar year, such payment will
be made on the immediately preceding Business Day. In the event
that payment of the Redemption Price in respect of Preferred
Securities of any series is improperly withheld or refused and
not paid either by ConAgra Capital or by ConAgra pursuant to the
Limited Guarantee, dividends on such securities will continue to
accrue, at the applicable rate from time to time, from the
Redemption Date originally established by ConAgra Capital for
such securities to the date such Redemption Price is actually
paid, in which case the actual payment date will be the date
fixed for redemption for purposes of calculating the Redemption
Price.
Subject to the foregoing and applicable law (including,
without limitation, U.S. federal securities laws) ConAgra or its
subsidiaries may at any time and from time to time purchase
outstanding Preferred Securities of any series by tender, in the
open market or by private agreement.
Liquidation Distribution
In the event of any voluntary or involuntary liquidation,
dissolution or winding up of ConAgra Capital, the holders of
Preferred Securities of each series at the time outstanding will
be entitled to receive out of the assets of ConAgra Capital
legally available for distribution to securityholders, before any
distribution of assets is made to holders of common securities of
ConAgra Capital or any other class of securities in ConAgra
Capital ranking junior to the Preferred Securities as regards
participation in assets of ConAgra Capital, but together with the
holders of Preferred Securities of any other series or any other
preferred securities of ConAgra Capital outstanding ranking pari
passu with the Preferred Securities as regards participation in
the assets of ConAgra Capital ("ConAgra Capital Liquidation
Parity Securities"), an amount equal, in the case of the holders
of the Preferred Securities of such series, to the aggregate of
the stated liquidation preference for Preferred Securities of
such series as set forth in the Prospectus Supplement and all
accumulated and unpaid dividends (whether or not declared) to the
date of payment (the "Liquidation Distribution"). If, upon any
such liquidation, the Liquidation Distributions can be paid only
in part because ConAgra Capital has insufficient assets available
to pay in full the aggregate Liquidation Distributions and the
aggregate maximum liquidation distributions on ConAgra Capital
Liquidation Parity Securities, then the amounts payable directly
by ConAgra Capital on the Preferred Securities of such series and
on such ConAgra Capital Liquidation Parity Securities shall be
paid on a pro rata basis, so that
(i)(x) the aggregate amount paid as Liquidation
Distributions on the Preferred Securities of such
series bears to (y) the aggregate amount paid as
liquidation distributions on ConAgra Capital
Liquidation Parity Securities the same ratio as
(ii)(x) the aggregate Liquidation Distribution
bears to (y) the aggregate maximum liquidation
distributions on ConAgra Capital Liquidation Parity
Securities.
Pursuant to the Agreement, ConAgra Capital will
automatically dissolve and be liquidated (i) when the period
fixed for the life of ConAgra Capital expires, (ii) if the
Managing Members by resolution require ConAgra Capital to be
wound up and dissolved (subject to the voting rights of the
holders of the Preferred Securities described in "Voting Rights")
or (iii) upon the bankruptcy, insolvency or liquidation of either
Managing Member.
Voting Rights
The holders of the Preferred Securities have no voting
rights except as described herein or in the applicable Prospectus
Supplement. If (i) ConAgra Capital fails to pay dividends in
full on the Preferred Securities of any series for 18 consecutive
monthly dividend periods; (ii) an Event of Default (as defined in
the Debentures) occurs and is continuing on the Debentures; or
(iii) ConAgra is in default on any of its payment or other
obligations under the Limited Guarantee (as described under
"Description of the Limited Guarantee -- Certain Covenants of
ConAgra"), then the holders of a majority in stated liquidation
preference of the outstanding Preferred Securities of such
series, together with the holders of any other preferred
securities in ConAgra Capital having the right to vote for the
appointment of a trustee in such event, acting as a single class,
will be entitled to appoint and authorize a trustee to enforce
ConAgra Capital's rights under the Debentures against ConAgra,
enforce the obligations undertaken by ConAgra under the Limited
Guarantee and declare and pay dividends on the Preferred
Securities of such series. For purposes of determining whether
ConAgra Capital has failed to pay dividends in full for 18
consecutive monthly dividend periods, dividends shall be deemed
to remain in arrears, notwithstanding any payments in respect
thereof, until full cumulative dividends have been or
contemporaneously are declared and paid with respect to all
monthly dividend periods terminating on or prior to the date of
payment of such full cumulative dividends. Not later than 30
days after such right to -appoint a trustee arises, the Managing
Members will convene a meeting for the above purpose. If the
Managing Members fail to convene such meeting within such 30-day
period, the holders of 10% in stated liquidation preference of
the outstanding Preferred Securities of such series and such
other preferred securities will be entitled to convene such
meeting. The provisions of the Agreement relating to the
convening and conduct of meetings of securityholders will apply
with respect to any such meeting. Any trustee so appointed shall
vacate office immediately, subject to the terms of such other
preferred securities, if ConAgra Capital shall have paid in full
all accumulated and unpaid dividends on the Preferred Securities
of such series or such default or breach by ConAgra shall have
been cured.
If any resolution is proposed for adoption by the
securityholders of ConAgra Capital providing for, or the Managing
Members propose to take any action to effect, (x) any variation
or abrogation of the rights, preferences and privileges of the
Preferred Securities of any series by way of amendment of the
Agreement or otherwise (including, without limitation, the
authorization or issuance of any securities in ConAgra Capital
ranking, as to participation in the profits or assets of ConAgra
Capital, senior to the Preferred Securities) which variation or
abrogation adversely affects the holders of Preferred Securities
of such series, (y) the liquidation, dissolution or winding up of
ConAgra Capital or (z) the commencement of any bankruptcy,
insolvency, reorganization or other similar proceeding involving
ConAgra Capital in the United States or any state thereof, then
the holders of outstanding Preferred Securities of such series
(and, in the case of a resolution described in clause (x) above
which would adversely affect the rights, preferences or
privileges of any ConAgra Capital Dividend Parity Securities or
any ConAgra Capital Liquidation Parity Securities, such ConAgra
Capital Dividend Parity Securities or such ConAgra Capital
Liquidation Parity Securities, as the case may be, or, in the
case of any resolution described in clause (y) above, all ConAgra
Capital Liquidation Parity Securities or, in the case of any
resolution described in clause (z) above, other than holders of
any Preferred Securities of such series that are also creditors
of ConAgra or any of its subsidiaries) will be entitled to vote
together as a class on such resolution or action of the Managing
Members (but not any other resolution or action) and such
resolution or action shall not be effective except with the
approval of the holders of 66 2/3% in stated liquidation
preference of such outstanding securities (or, under certain
circumstances, 100% in stated liquidation preference of such
outstanding securities); provided, however, that no such approval
shall be required under clauses (y) and (z) if the liquidation,
dissolution or winding up of ConAgra Capital is proposed or
initiated upon the initiation of proceedings, or after
proceedings have been initiated, for the liquidation,
dissolution, or winding up of either of the Managing Members.
The rights attached to the Preferred Securities of any
series will be deemed not to be varied by the creation or issue
of, and no vote will be required for the creation or issue of,
any further securities in ConAgra Capital ranking pari passu with
or junior to the Preferred Securities of any series with regard
to participation in the profits or assets of ConAgra Capital.
Any required approval of holders of Preferred Securities may
be given at a separate meeting of such holders convened for such
purpose or at a meeting of securityholders of ConAgra Capital or
pursuant to written consent. ConAgra Capital will cause a notice
of any meeting at which holders of the Preferred Securities of a
series are entitled to vote, or of any matter upon which action
may be taken by written consent of such holders, to be mailed to
each holder of record of the Preferred Securities of such series.
Each such notice will include a statement setting forth (i) the
date of such meeting or the date by which such action is to be
taken, (ii) a description of any resolution proposed for adoption
at such meeting on which such holders are entitled to vote or of
such matters upon which written consent is sought and (iii)
instructions for the delivery of proxies or consents.
Notwithstanding that holders of Preferred Securities of any
series are entitled to vote or consent under any of the
circumstances described above, any of the Preferred Securities of
any series that are owned by ConAgra or any entity owned more
than 50% by ConAgra, either directly or indirectly, shall not be
entitled to vote or consent and shall, for the purposes of such
vote or consent, be treated as if they were not outstanding.
Book-Entry-Only Issuance; The Depository Trust Company
DTC, New York, New York, will act as securities depository
for the Preferred Securities. The Preferred Securities will be
issued only as fully-registered securities registered in the name
of Cede & Co. (DTC's partnership nominee). One or more fully-
registered global Preferred Securities certificates will be
issued for each series of Preferred Securities, representing all
of the Preferred Securities of such series, and will be deposited
with DTC.
DTC is a limited-purpose trust company organized under the
New York Banking Law, a "banking organization" within the meaning
of the New York Banking Law, a member of the Federal Reserve
System, a "clearing corporation" within the meaning of the New
York Uniform Commercial Code and a "clearing agency" registered
pursuant to the provisions of Section 17A of the Exchange Act.
DTC holds securities that its participants ("Participants")
deposit with DTC. DTC also facilitates the settlement among
Participants of securities transactions, such as transfers and
pledges, in deposited securities through electronic computerized
book-entry changes in Participants' accounts, thereby eliminating
the need for physical movement of securities certificates.
Direct participants include securities brokers and dealers,
banks, trust companies, clearing corporations, and certain other
organizations ("Direct Participants"). DTC is owned by a number
of its Direct Participants and by the New York Stock Exchange,
Inc., the American Stock Exchange, Inc. and the National
Association of Securities Dealers, Inc. Access to the DTC system
is also available to others such as securities brokers and
dealers, banks and trust companies that clear through or maintain
a custodial relationship with a Direct Participant, either
directly or indirectly ("Indirect Participants"). The Rules
applicable to DTC and its Participants are on file with the
Commission.
Purchases of Preferred Securities under the DTC system must
be made by or through Direct Participants, which will receive a
credit for the Preferred Securities on DTC's records. The
ownership interest of each actual purchaser of each Preferred
Securities ("Beneficial Owner") is in turn to be recorded on the
Direct and Indirect Participants' records. Beneficial Owners
will not receive written confirmation from DTC of their purchase,
but Beneficial Owners are expected to receive written
confirmations providing details of their transactions, as well as
periodic statements of their holdings, from the Direct or
Indirect Participant through which the Beneficial Owner purchased
Preferred Securities. Transfers of ownership interests in the
Preferred Securities are to be accomplished by entries made on
the books of Participants acting on behalf of Beneficial Owners.
Beneficial Owners will not receive certificates representing
their ownership interests in Preferred Securities, except in the
event that use of the book-entry system for the Preferred
Securities is discontinued.
To facilitate subsequent transfers, all Preferred Securities
deposited by Participants with DTC are registered in the name of
Cede & Co. The deposit of Preferred Securities with DTC and
their registration in the name of Cede & Co. effect no change in
beneficial ownership. DTC has no knowledge of the actual
Beneficial Owners of the Preferred Securities; DTC's records
reflect only the identity of the Direct Participants to whose
accounts such Preferred Securities are credited, which may or may
not be the Beneficial Owners. The Participants will remain
responsible for keeping account of their holdings on behalf of
their customers.
Conveyance of notices and other communications by DTC to
Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect
Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory
requirements as may be in effect from time to time.
Redemption notices will be sent to Cede & Co. If less then
all of the Preferred Securities of any series are being redeemed,
DTC's practice is to determine by lot the amount of the interest
of each Direct Participant in such series to be redeemed.
Although voting with respect to the Preferred Securities is
limited, in those cases where a vote is required, neither DTC nor
Cede & Co. will consent or vote with respect to Preferred
Securities. Under its usual procedures, DTC mails an Omnibus
Proxy to ConAgra Capital as soon as possible after the record
date. The Omnibus Proxy assigns Cede & Co.'s consenting or
voting rights to those Direct Participants to whose accounts the
Preferred Securities are credited on the record date (identified
in a listing attached to the Omnibus Proxy).
Dividend payments on the Preferred Securities will be made
to DTC. DTC's practice is to credit Direct Participants'
accounts on the relevant payable date in accordance with their
respective holdings shown on DTC's records unless DTC has reason
to believe that it will not receive payments on such payable
date. Payments by Participants to Beneficial Owners will be
governed by standing instructions and customary practices and
will be the responsibility of such Participant and not of DTC,
ConAgra Capital or ConAgra, subject to any statutory or
regulatory requirements as may be in effect from time to time.
Payment of dividends to DTC will be the responsibility of ConAgra
Capital, disbursement of such payments to Direct Participants
will be the responsibility of DTC and disbursement of such
payments to the Beneficial Owners will be responsibility of
Direct and Indirect Participants.
DTC may discontinue providing its services as securities
depository with respect to the Preferred Securities of any series
at any time by giving reasonable notice to ConAgra Capital and
ConAgra. Under such circumstances, in the event that a successor
securities depository is not obtained, Preferred Securities
certificates for such series are required to be printed and
delivered.
The information in this section concerning DTC and DTC's
book-entry system has been obtained from sources that ConAgra
Capital believes to be reliable, but neither ConAgra Capital nor
ConAgra takes responsibility for the accuracy thereof.
Registrar, Transfer Agent and Paying Agent
ConAgra will initially act as registrar, transfer agent and
paying agent for the Preferred Securities.
Registration of transfers of Preferred Securities of any
series will be effected without charge by or on behalf of ConAgra
Capital, but upon payment (with the giving of such indemnity as
ConAgra Capital or ConAgra may require) in respect of any tax or
other governmental charges which may be imposed in relation to
it.
ConAgra Capital will not be required to register or cause to
be registered the transfer of Preferred Securities of a
particular series after such Preferred Securities have been
called for redemption.
Miscellaneous
The Preferred Securities are not subject to any sinking fund
provisions. Holders of Preferred Securities of any series have
no preemptive rights.
ConAgra and ConAgra Capital will enter into an agreement
(the "Expense Agreement") pursuant to which ConAgra will agree to
guarantee the payment of any liabilities incurred by ConAgra
Capital other than obligations to holders of Preferred
Securities, which will be separately guaranteed to the extent set
forth in the Limited Guarantee. See "Description of the Limited
Guarantee." The Expense Agreement will expressly provide that it
is for the benefit of, and is enforceable by, third parties to
whom ConAgra Capital owes such obligations. A copy of the form
of Expense Agreement has been filed as an exhibit to the
Registration Statement of which this Prospectus forms a part.
DESCRIPTION OF THE LIMITED GUARANTEE
Set forth below is condensed information concerning the
limited guarantee (the "Limited Guarantee") which will be
executed and delivered by ConAgra for the benefit of the holders
from time to time of Preferred Securities. This summary contains
all material information concerning the Limited Guarantee but
does not purport to be complete. References to provisions of the
Limited Guarantee are qualified in their entirety by reference to
the text of the Limited Guarantee, a form of which has been filed
as an exhibit to the Registration Statement of which this
Prospectus forms a part.
General
ConAgra will irrevocably and unconditionally agree, to the
extent set forth herein, to pay in full, to the holders of the
Preferred Securities of any series, the Guarantee Payments (as
defined below) (except to the extent paid by ConAgra Capital), as
and when due, regardless of any defense, right of set-off or
counterclaim which ConAgra Capital may have or assert. The
following payments to the extent not paid by ConAgra Capital (the
"Guarantee Payments") will be subject to the Limited Guarantee
(without duplication): (i) any accumulated and unpaid dividends
which have been theretofore declared on the Preferred Securities
of such series out of funds legally available therefor, (ii) the
redemption price (including all accumulated unpaid dividends)
payable out of funds legally available therefor with respect to
Preferred Securities of any series called for redemption by
ConAgra Capital and (iii) upon the liquidation of ConAgra
Capital, the lesser of (a) the aggregate of the stated
liquidation preference and all accumulated and unpaid dividends
(whether or not declared) to the date of payment and (b) the
amount of assets of ConAgra Capital legally available for
distribution to holders of Preferred Securities of such series in
liquidation. ConAgra's obligation to make a Guarantee Payment
may be satisfied by direct payment of the required amounts by
ConAgra to the holders of Preferred Securities of any series or
by causing ConAgra Capital to pay such amounts to such holders.
Certain Covenants of ConAgra
In the Limited Guarantee, ConAgra will covenant that, so
long as any Preferred Securities of any series remain
outstanding, neither ConAgra nor any majority owned subsidiary of
ConAgra will declare or pay any dividend on, or redeem, purchase,
acquire or make a liquidation payment with respect to, any of
ConAgra's capital stock or make any guarantee payments with
respect to the foregoing (other than payments under the Limited
Guarantee, payments to redeem common share purchase rights under
ConAgra's shareholder rights plan dated July 10, 1986, as
amended, or the declaration of a dividend of similar share
purchase rights in the future), if at such time ConAgra will be
in default with respect to its payment or other obligations under
the Limited Guarantee or the Expense Agreement or there shall
have occurred any event that, with the giving of notice or the
lapse of time or both, would constitute an Event of Default under
the Debentures then outstanding.
In the Limited Guarantee, ConAgra will also covenant that,
so long as Preferred Securities of any series remain outstanding,
it will (i) not cause or permit any Common Securities of ConAgra
Capital to be transferred, (ii) maintain direct or indirect 100%
ownership of all outstanding securities of ConAgra Capital other
than the Preferred Securities and any other securities permitted
to be issued by ConAgra Capital that would not cause it to become
an "investment company" under the Investment Company Act of 1940,
as amended, (iii) cause at least 21% of the total value of
ConAgra Capital and at least 21% of all interests in the capital,
income, gain, loss, deduction and credit of ConAgra Capital to be
represented by Common Securities, (iv) not voluntarily dissolve,
windup or liquidate ConAgra Capital or either of the Managing
Members, (v) cause the Subsidiaries to remain the Managing
Members of ConAgra Capital and timely perform all of their
respective duties as Managing Members of ConAgra Capital and (vi)
use reasonable efforts to cause ConAgra Capital to remain a
limited liability company and otherwise continue to be treated as
a partnership for U.S. federal income tax purposes; provided that
ConAgra may permit ConAgra Capital to consolidate or merge with
or into another limited liability company or limited partnership
as described above under "Description of Preferred Securities --
Certain Restrictions on ConAgra Capital" so long as ConAgra
agrees to comply with the covenants described in clauses (i)
through (vi) above with respect to such successor limited
liability company or limited partnership.
Amendments and Assignment
Except with respect to any changes which do not adversely
affect the rights of holders of the Preferred Securities (in
which case no vote will be required), the Limited Guarantee may
be amended only with the prior approval of the holders of not
less than 66 2/3% in stated liquidation preference of all
Preferred Securities of all series then outstanding. The manner
of obtaining any such approval of holders of the Preferred
Securities will be as set forth under "Description of Preferred
Securities -- Voting Rights." All guarantees and agreements
contained in the Limited Guarantee shall bind the successors,
assigns, receivers, trustees and representatives of ConAgra and
shall inure to the benefit of the holders of the Preferred
Securities then outstanding.
Termination of the Limited Guarantee
The Limited Guarantee will terminate and be of no further
force and effect as to any series of Preferred Securities upon
full payment of the Redemption Price of all Preferred Securities
of such series or upon the retirement of all Preferred Securities
of such series, and shall terminate completely upon full payment
of the amounts payable upon liquidation of ConAgra Capital. The
Limited Guarantee will continue to be effective or will be
reinstated, as the case may be, if at any time any holder of
Preferred Securities of any series must restore payment of any
sums paid under the Preferred Securities of such series or the
Limited Guarantee.
Status of the Limited Guarantee
The Limited Guarantee will constitute an unsecured
obligation of ConAgra and will rank (i) subordinate and junior in
right of payment to all other liabilities of ConAgra, (ii) pari
passu with the most senior preferred stock now or hereafter
issued by ConAgra and with any guarantee now or hereafter entered
into by ConAgra in respect of any preferred or preference stock
of any affiliate of ConAgra and (iii) senior to ConAgra's common
stock. For purposes of clause (ii), pari passu means that any
payments to which beneficiaries of the Limited Guarantee are
entitled must be shared with holders of any preferred or
preference stock to which the Limited Guarantee is stated to be
pari passu ("Pari Passu Stock") to the same extent as would be
required under applicable law if instead the Limited Guarantee
constituted a class of preferred or preference stock of ConAgra
ranking pari passu with such Pari Passu Stock as to such
payments.
The Limited Guarantee will constitute a guarantee of payment
and not of collection. Accordingly, a holder of Preferred
Securities may enforce the Limited Guarantee directly against
ConAgra, and ConAgra will waive any right or remedy to require
that any action be brought against ConAgra Capital or any other
person or entity before proceeding against ConAgra. The Limited
Guarantee will not be discharged except by payment of the
Guarantee Payments in full to the extent not paid by ConAgra
Capital.
Since ConAgra is a holding company, the rights of ConAgra
and hence the rights of creditors of ConAgra (including the
rights of holders of Preferred Securities under the Limited
Guarantee), to participate in any distribution of the assets of
any subsidiary upon its liquidation or reorganization or
otherwise is necessarily subject to the prior claims of creditors
of the subsidiary, except to the extent that claims of ConAgra
itself as a creditor of the subsidiary may be recognized.
Governing Law
The Limited Guarantee will be governed by and construed in
accordance with the laws of the State of New York.
DESCRIPTION OF THE DEBENTURES
Set forth below is condensed information concerning the
Debentures that will evidence the loans to be made by ConAgra
Capital to ConAgra of the proceeds of (i) Preferred Securities of
each series and (ii) ConAgra Capital's Common Securities and
related capital contributions ("Common Securities Payments"). See
"Description of the Indentures" for a summary of the material
provisions of the subordinated indenture dated March 10, 1994
between ConAgra and First Trust National Association as Trustee
(the "Subordinated Indenture"). References to provisions of the
Subordinated Indenture are qualified in their entirety by
reference to the text of the Subordinated Indenture, a form of
which has been filed as an exhibit to the Registration Statement
of which this Prospectus forms a part. All Debentures will be
issued under the Subordinated Indenture.
General
The aggregate dollar amount of the Debentures relating to
Preferred Securities of any series will be set forth in the
Prospectus Supplement for such series and will be equal to the
aggregate liquidation preference of the Preferred Securities of
such series, together with the related Common Interest Payments.
The entire principal amount of all Debentures will become
due and payable, together with any accrued and unpaid interest
thereon, including Additional Interest (as herein defined) if
any, on the earliest of (i) the date that is the forty-ninth
anniversary of the issuance of the Preferred Securities of the
first series issued, subject to ConAgra's right to exchange such
Debentures for new debentures or reborrow the proceeds from the
repayment of such Debentures upon the terms and subject to the
conditions set forth under "Description of Preferred Securities -
- Redemption" or (ii) the date upon which ConAgra Capital is
dissolved, wound up or liquidated.
Mandatory Prepayment
If ConAgra Capital redeems Preferred Securities of any
series in accordance with the terms thereof, the Debentures
relating to such series will become due and payable in a
principal amount equal to the aggregate stated liquidation
preference of the Preferred Securities of such series so redeemed
(together with any accrued but unpaid interest, including
Additional Interest, if any, on the portion being prepaid). Any
payment pursuant to this provision shall be made prior to 12:00
noon, New York time, on the date of such redemption or at such
other time on such earlier date as ConAgra Capital and ConAgra
shall agree.
Optional Prepayment
ConAgra has the right to prepay the Debentures relating to
Preferred Securities of a series, without premium or penalty, in
whole or in part (together with any accrued but unpaid interest,
including Additional Interest, if any, on the portion being
prepaid) at any time following the date, if any, set forth in the
Prospectus Supplement for such series.
Interest
The Debentures relating to Preferred Securities of a series
shall bear interest at the fixed annual rate set forth in the
Prospectus Supplement for such series, or shall bear interest in
the manner otherwise specified in such Prospectus Supplement, in
each case accruing from the date they are issued until maturity.
Such interest shall be payable monthly on the last day of each
calendar month, commencing on the date specified in the
Prospectus Supplement relating to such series. In the event that
any date on which interest is payable on such Debentures is not a
Business Day, then payment of the interest payable on such date
will be made on the next succeeding day which is a Business Day
(and without any interest or other payment in respect of any such
delay) except that, if such Business Day is in the next
succeeding calendar year, such payment shall be made on the
immediately preceding Business Day, in each case with the same
force and effect as if made on such date. The amount of interest
payable for any full monthly interest period will be computed on
the basis of twelve 30-day months and a 360-day year and, for any
period shorter than a full monthly interest period, will be
computed on the basis of the actual number of days elapsed in
such period.
Option to Extend Interest Payment Period
ConAgra shall have the right at any time or times during the
term of such Debentures, so long as ConAgra is not in default in
the payment of interest under the Debentures, to extend the
interest payment period up to 18 months, at the end of which
period ConAgra will pay all interest then accrued and unpaid
(together with interest on each monthly installment of interest
at the rate used to compute such monthly installment, to the
extent permitted by applicable law); provided further that,
during any such extended interest period, neither ConAgra nor any
majority owned subsidiary of ConAgra shall pay or declare any
dividends on, or redeem, purchase, acquire or make a liquidation
payment with respect to, any of its capital stock (other than
payments to redeem common share purchase rights under ConAgra's
shareholder rights plan dated July 10, 1986, as amended, or to
declare a dividend of similar share purchase rights in the
future); and provided further that any such extended interest
period may only be selected with respect to any Debenture if an
extended interest period of identical length is simultaneously
selected for all Debentures. Prior to the termination of any
such extended interest payment period ConAgra may further extend
the interest payment period; provided that such extended interest
payment period, together with all such further extensions
thereof, may not exceed 18 months. Following the termination of
any extended interest payment period, if ConAgra has paid all
accrued and unpaid interest required by the Debentures for such
period, then ConAgra shall have the right to again extend the
interest payment period up to 18 months as herein described.
ConAgra shall give ConAgra Capital notice of its selection of
such extended interest payment period one Business Day prior to
the earlier of (i) the date ConAgra Capital declares the related
dividend or (ii) the date ConAgra Capital is required to give
notice of the record or payment date of such related dividend to
the New York Stock Exchange or other applicable self-regulatory
organization or to holders of the Preferred Securities, but in
any event not less than two Business Days prior to such record
date. ConAgra will cause ConAgra Capital to give such notice of
ConAgra's selection of such extended interest payment period to
the holders of the Preferred Securities.
Additional Interest
In addition, if at any time following the date of the
Prospectus Supplement relating to the Preferred Securities of a
series, ConAgra Capital shall be required to pay, with respect to
its income derived from the interest payments on the Debentures
relating to the Preferred Securities of such series, any amounts
for or on account of any taxes, duties, assessments or
governmental charges of whatever nature imposed by the United
States, or any other taxing authority, then, in any such case,
ConAgra will pay as interest such additional amounts ("Additional
Interest") as may be necessary in order that the net amounts
received and retained by ConAgra Capital after the payment of
such taxes, duties, assessments or governmental charges shall
result in ConAgra Capital's having such funds as it would have
had in the absence of the payment of such taxes, duties,
assessments or governmental charges.
Method and Date of Payment
Each payment by ConAgra of principal and interest (including
Additional Interest, if any) on the Debentures shall be made to
ConAgra Capital in lawful money of the United States. Such
interest shall be payable monthly on the last day (an "Interest
Payment Date") of each calendar month commencing on the day
specified in the applicable prospectus supplement following
issuance of the Debentures to the holder or holders of the
Debentures on the relevant record date (each, a "Record Date"),
which shall be one Business Day prior to the relevant Interest
Payment Date. If the Interest Payment Date is not a Business
Day, then payment of the interest payable on such day will be
made on the next succeeding day which is a Business Day (and
without any interest or other payment in respect of any such
delay) except
that, if such Business Day is in the next succeeding calendar
year, such payment shall be made on the immediately preceding
Business Day (and the Record Date for such Interest Payment Date
shall be one Business Day prior to the date on which payment is
to be made), in each case with the same force and effect as if
made on such date.
Set-off
Notwithstanding anything to the contrary in the Subordinated
Indenture or Debentures, ConAgra shall have the right to set-off
any payment it is otherwise required to make thereunder with and
to the extent ConAgra has theretofore made, or is concurrently on
the date of such payment making, a payment under the Limited
Guarantee.
Subordination
The Subordinated Indenture will provide that ConAgra and the
holders of the Debentures (including ConAgra Capital) covenant
and agree (and each holder of Preferred Securities by acceptance
thereof agrees) that each of the Debentures is subordinate and
junior in right of payment to all Senior Indebtedness as provided
in the Subordinated Indenture. The Subordinated Indenture
defines "Senior Indebtedness" as obligations (other than non-
recourse obligations and the indebtedness issued under the
Subordinated Indenture) of, or guaranteed or assumed by, ConAgra
for borrowed money (including both senior and subordinated
indebtedness for borrowed money (other than the Debentures)), or
evidenced by bonds, debentures, notes or other similar
instruments, and amendments, renewals, extensions, modifications
and refundings of any such indebtedness or obligation, whether
existing as of the date of the Subordinated Indenture or
subsequently incurred by ConAgra.
In the event (a) of any insolvency or bankruptcy
proceedings, or any receivership, liquidation, or any proceedings
for liquidation, dissolution or other winding up of ConAgra or a
substantial part of its property, whether or not involving
insolvency or bankruptcy, or (b) that (i) a default shall have
occurred with respect to the payment of principal of (and
premium, if any) or interest on or other monetary amounts due and
payable on any Senior Indebtedness or (ii) there shall have
occurred an event of default (other than a default in the payment
of principal (or premium, if any) or interest, or other monetary
amounts due and payable) with respect to any Senior Indebtedness,
as defined therein or in the instrument under which the same is
outstanding, permitting the holder or holders thereof to
accelerate the maturity thereof (with notice or lapse of time, or
both), and such event of default shall have continued beyond the
period of grace, if any, in respect thereof, and, in the cases of
subclauses (i) and (ii) of this clause (b), such default or event
of default shall not have been cured or waived or shall not have
ceased to exist, or (c) that the principal of or the accrued
interest on the Debentures shall have been declared due and
payable upon an Event of Default and such declaration shall not
have been rescinded and annulled as provided therein, then the
holders of all Senior Indebtedness shall first be entitled to
receive payment of the full amount due thereon, or provision
shall be made for such payment in money or money's worth, before
the holders of any of the Debentures are entitled to receive a
payment on account of the principal of (and premium, if any) or
any interest on the indebtedness evidenced by the Debentures.
Since ConAgra is a holding company, the rights of ConAgra
and hence the rights of creditors of ConAgra (including the
rights of holders of the Debentures), to participate in any
distribution of the assets of any subsidiary upon its liquidation
or reorganization or otherwise is necessarily subject to the
prior claims of creditors of the subsidiary, except to the extent
that claims of ConAgra itself as a creditor of the subsidiary may
be recognized.
Covenants
In the Debentures, ConAgra will covenant that, so long as
any Preferred Securities of any series remain outstanding,
neither ConAgra nor any majority owned subsidiary of ConAgra will
declare or pay any dividend on, or redeem, purchase, acquire or
make a liquidation payment with respect to, any of ConAgra's
capital stock or make any guarantee payments with respect to the
foregoing (other than payments under the Limited Guarantee,
payments to redeem common share purchase rights under ConAgra's
shareholder rights plan dated July 10, 1986, as amended, or the
declaration of a dividend of similar share purchase rights in the
future) if at such time ConAgra will be in default with respect
to its payment or other obligations under the Limited Guarantee
or the Expense Agreement or there shall have occurred any event
that, with the giving of notice or the lapse of time or both,
would constitute an Event of Default under the Debentures.
In the Debentures, ConAgra will also covenant that, so long
as Preferred Securities of any series remain outstanding, it will
(i) not cause or permit any Common Securities of ConAgra Capital
to be transferred, (ii) maintain direct or indirect ownership of
all outstanding securities in ConAgra Capital other than the
Preferred Securities and any other securities permitted to be
issued by ConAgra Capital that would not cause it to become an
"investment company" under the Investment Company Act of 1940, as
amended, (iii) cause at least 21% of the total value of ConAgra
Capital and at least 21% of all interests in the capital, income,
gain, loss, deduction and credit of ConAgra Capital to be
represented by Common Securities, (iv) not voluntarily dissolve,
windup or liquidate ConAgra Capital or either of the Managing
Members, (v) cause the Subsidiaries to remain the Managing
Members of ConAgra Capital and timely perform all of their
respective duties as Managing Members of ConAgra Capital, and
(vi) use reasonable efforts to cause ConAgra Capital to remain a
limited liability company and otherwise continue to be treated as
a partnership for U.S. federal income tax purposes; provided that
ConAgra may permit ConAgra Capital to consolidate or merge with
or into another limited liability company as described above
under "Description of Preferred Securities -- Certain
Restrictions on ConAgra Capital" so long as ConAgra agrees to
comply with the covenants described in clauses (i) through (vi)
above with respect to such successor limited liability company.
So long as ConAgra Capital holds the Debentures of any
series, it may not waive compliance or waive any default in
compliance by ConAgra of any covenant or other term in the
Debentures of any series or the Subordinated Indenture without
the approval of the same percentage of the holders of Preferred
Securities of such series, obtained in the same manner, as would
be required for an amendment of such Debentures to the same
effect.
Events of Default
If one or more of the following events (each an "Event of
Default") shall occur and be continuing:
(a) ConAgra shall fail to pay when due any interest,
including any Additional Interest, under the Debentures of
any series and such default shall continue for 30 days
(whether or not payment is prohibited by the provisions
described above under "Subordination" or otherwise);
provided that a valid extension of the interest payment
period by ConAgra shall not constitute a default in the
payment of interest for this purpose;
(b) ConAgra shall fail to pay when due any principal
under the Debentures of any series (whether or not payment
is prohibited by the provisions described above under
"Subordination" or otherwise);
(c) ConAgra shall fail to perform or observe any other
term, covenant or agreement contained in the Debentures of
any series for a period of 90 days after written notice
thereof, as provided in the Subordinated Indenture;
(d) the dissolution, winding up or liquidation of
ConAgra Capital; or
(e) certain events of bankruptcy, insolvency or
reorganization of ConAgra Capital or ConAgra;
then ConAgra Capital will have the right to declare the principal
of and the interest on the Debentures (including any Additional
Interest and any interest subject to an extension election) and
any other amounts payable under the Debentures to be forthwith
due and payable and to enforce its other rights as a creditor
with respect to the Debentures. No Debentures may be so
accelerated by ConAgra Capital unless all Debentures are so
accelerated. Under the terms of the Preferred Securities, the
holders of outstanding Preferred Securities will have the rights
referred to under "Description of Preferred Securities -- Voting
Rights," including the right to appoint a trustee, which trustee
shall be authorized to exercise ConAgra Capital's right to
accelerate the principal amount of the Debentures and to enforce
ConAgra Capital's other creditor rights under the Debentures;
provided that any trustee so appointed shall vacate office
immediately if any such Event of Default shall have been cured by
ConAgra. In addition, in the event ConAgra fails to pay any
principal or interest under the Debentures of any series when
due, holders of Preferred Securities shall, under certain
circumstances, be entitled to enforce ConAgra Capital's right to
receive such payments under all Debentures then outstanding
directly against ConAgra.
Governing Law
The Debentures and Subordinated Indenture will be governed
by and construed in accordance with the laws of the State of New
York.
Miscellaneous
ConAgra shall have the right at all times to assign any of
its rights or obligations under the Debentures to a direct or
indirect wholly owned subsidiary of ConAgra; provided that, in
the event of any such assignment, ConAgra shall remain jointly
and severally liable for all such obligations; and provided
further that ConAgra shall have received an opinion of nationally
recognized tax counsel that such assignment shall not constitute
a taxable event to the holders of Preferred Securities for
federal income tax purposes. ConAgra Capital may not assign any
of its rights under the Debentures without the prior written
consent of ConAgra. Subject to the foregoing, the Debentures
shall be binding upon and inure to the benefit of ConAgra and
ConAgra Capital and their respective successors and assigns. The
Debentures may not otherwise be assigned by ConAgra or ConAgra
Capital, except as described above under "Description of
Preferred Securities -- Certain Restrictions on ConAgra Capital."
Any assignment by ConAgra or ConAgra Capital in contravention of
these provisions will be null and void.
The Subordinated Indenture provides that ConAgra may
consolidate or merge with, or convey, transfer or lease its
properties and assets substantially as an entirety to any other
corporation, provided that such successor corporation expressly
assumes all obligations of ConAgra under the Subordinated
Indenture and certain other conditions are met.
The Debentures may be amended by mutual consent of ConAgra
and the holders thereof in the manner the parties shall agree;
provided that, so long as any of the Preferred Securities remain
outstanding, no such amendment shall be made that adversely
affects the holders of Preferred Securities then outstanding, and
no termination of the Debentures shall occur, without the prior
consent of the holders of not less than 66 2/3% in stated
liquidation preference of all Preferred Securities then
outstanding (or, under certain circumstances, 100% in stated
liquidation preference of all Preferred Securities then
outstanding), unless and until the Debentures and all accrued and
unpaid interest thereon (including Additional Interest, if any)
shall have been paid in full.
CERTAIN UNITED STATES FEDERAL INCOME TAX CONSEQUENCES
The following discussion is a summary of certain United
States federal income tax consequences of the purchase, ownership
and disposition of Preferred Securities and is based upon the
advice of Davis Polk & Wardwell, special United States tax
counsel, with respect to United States federal income taxes. It
deals only with Preferred Securities held as capital assets by
initial purchasers who acquire the Preferred Securities at the
original offering price, and not with special classes of holders,
such as dealers in securities or currencies, life insurance
companies, persons holding Preferred Securities as a hedge or
hedge against currency risks or as part of a straddle, or persons
whose functional currency is not the U.S. dollar. This summary
is based on tax laws in effect in the United States, regulations
thereunder and administrative and judicial interpretations
thereof, as of the date hereof, all of which are subject to
change (possibly on a retroactive basis). This summary deals
only with holders who purchase Preferred Securities of any
series, and is subject to additional discussion of material
United States federal income tax consequences that may appear in
a Prospectus Supplement delivered in connection with a particular
series of Preferred Securities.
PROSPECTIVE PURCHASERS OF PREFERRED SECURITIES ARE ADVISED
TO CONSULT THEIR OWN TAX ADVISORS AS TO THE UNITED STATES OR
OTHER TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP AND DISPOSITION
OF PREFERRED SECURITIES, INCLUDING THE EFFECT OF ANY STATE OR
LOCAL TAX LAWS.
Income from the Preferred Securities
ConAgra Capital will be treated as a partnership for federal
income tax purposes. Each holder of Preferred Securities (a
"Securityholder") will be required to include in gross income the
Securityholder's distributive share of ConAgra Capital's net
income, which will generally be equal to the amount of interest
received or accrued on the Debentures (see below under "Potential
Extension of Payment Period"). Any amount so included in a
Securityholder's gross income will increase its tax basis in the
Preferred Securities, and the amount of cash dividends to the
Securityholder will reduce its tax basis in the Preferred
Securities. No portion of the amounts received on a Preferred
Securities will be eligible for the dividends received deduction.
ConAgra Capital does not presently intend to make an
election under section 754 of the Internal Revenue Code of 1986,
as amended. As a result, a subsequent purchaser of Preferred
Securities will not be permitted to adjust its taxable income
from ConAgra Capital to reflect any difference between its
purchase price for the Preferred Securities and ConAgra Capital's
underlying tax basis for its assets.
Disposition of the Preferred Securities
Gain or loss will be recognized on a sale, exchange or other
disposition of the Preferred Securities (including a distribution
of cash in redemption of all of a Securityholder's Preferred
Securities) equal to the difference between the amount realized
and the Securityholder's tax basis in the Preferred Securities
disposed of. In the case of a cash distribution in partial
redemption of a Securityholder's Preferred Securities, no loss
will be recognized, the Securityholder's tax basis in the
Preferred Securities will be reduced by the amount of the
distribution, and the Securityholder will recognize gain to the
extent, if any, that the amount of the distribution exceeds its
tax basis in the Preferred Securities. Gain or loss recognized
by a Securityholder on the sale or exchange of Preferred
Securities held for more than one year will generally be taxable
as long-term capital gain or loss although under certain
circumstances Securityholders other than initial purchasers who
acquire the Preferred Securities at the original offering price
may be required to treat a portion of the proceeds realized upon
disposition as ordinary income.
Potential Extension of Payment Period
Under the terms of any Debenture evidencing a loan that may
be made from the proceeds of the issuance of Preferred
Securities, ConAgra may be permitted to extend the interest
payment period up to 18 months. In the event that ConAgra
exercises this right, ConAgra may not declare dividends on any
shares of its preferred or common stock, and therefore, the
likelihood of extension of the payment period is, in the view of
ConAgra Capital and ConAgra, remote. In the event that the
payment period is extended, ConAgra Capital will continue to
accrue income, equal to the amount of the interest payment due at
the end of the extended payment period, over the length of the
extended payment period.
Accrued income will be allocated, but not distributed, to
holders of record on the last day of each calendar month. As a
result, beneficial owners during an extended interest payment
period will include interest in gross income in advance of the
receipt of cash and any such holders who dispose of Preferred
Securities prior to the record date for the payment of dividends
following such extended interest payment period will include
interest in gross income but will not receive from ConAgra
Capital any cash related thereto. The tax basis of a Preferred
Securities will be increased by the amount of any interest that
is included in income without a receipt of cash, and will be
decreased again when such holders of record subsequently receive
cash from ConAgra Capital.
United States Alien Holders
For purposes of this discussion, a "United States Alien
Holder" is any corporation, individual, partnership, estate or
trust that is, as to the United States, a foreign corporation, a
non-resident alien individual, a foreign partnership or a non-
resident fiduciary of a foreign estate or trust.
Under present United States federal income tax law:
(i) payments by ConAgra Capital or any of its paying
agents to any holder of a Preferred Securities who or which
is a United States Alien Holder will not be subject to
United States federal withholding tax; provided that (a) the
beneficial owner of the Preferred Securities does not
actually or constructively own 10% or more of the total
combined voting power of all classes of stock of ConAgra
entitled to vote, (b) the beneficial owner of the Preferred
Securities is not a controlled foreign corporation that is
related to ConAgra through stock ownership, and (c) either
(A) the beneficial owner of the Preferred Securities
certifies to ConAgra Capital or its agent, under penalties
of perjury, that it is not a United States holder and
provides its name and address or (B) a securities clearing
organization, bank or other financial institution that holds
customers' securities in the ordinary course of its trade or
business (a "Financial Institution") and holds the Preferred
Securities certifies to ConAgra Capital or its agent under
penalties of perjury that such statement has been received
from the beneficial owner by it or by a Financial
Institution between it and the beneficial owner and
furnishes ConAgra Capital or its agent with a copy thereof;
and
(ii) a United States Alien Holder of a Preferred
Securities will not be subject to United States federal
withholding tax on any gain realized upon the sale or other
disposition of Preferred Securities.
ConAgra Capital Information Returns
Within 90 days after the close of every taxable year of
ConAgra Capital, the Managing Members of ConAgra Capital will
furnish each holder of the Preferred Securities with a Schedule
K-1 setting forth such Securityholder's allocable share of income
for ConAgra Capital's taxable year.
Any person who holds Preferred Securities as a nominee for
another person is required to furnish to ConAgra Capital (a) the
name, address and taxpayer identification number of the
beneficial owners and the nominee; (b) notice of whether each
beneficial owner is (i) a person that is not a United States
person, (ii) a foreign government, an international organization
or any wholly owned agency or instrumentality of either of the
foregoing, or (iii) a tax-exempt entity; (c) the amount and
description of Preferred Securities held, acquired or transferred
for the beneficial owners; and (d) certain information including
the dates of acquisitions and transfers, methods of acquisition
and the costs thereof, as well as net proceeds from transfers.
Brokers and financial institutions are required to furnish
additional information, including whether they are a United
States person and certain information on Preferred Securities
they acquire, hold or transfer for their own account. A penalty
of $50 is imposed for each failure to report the above
information to ConAgra Capital, up to a maximum of $100,000 per
calendar year for all failures.
DESCRIPTION OF THE INDENTURES
The Debt Securities are to be issued under either (i) an
indenture (the "Senior Indenture"), dated as of October 8, 1990,
between ConAgra and The Chase Manhattan Bank (National
Association), as trustee, a copy of which has been filed as an
exhibit to the Registration Statement of which this Prospectus
forms a part, or (ii) the Subordinated Indenture, a copy of which
has been filed as an exhibit to the Registration Statement of
which this Prospectus forms a part. The terms of each Indenture
are the same in all material respects, except as described below.
The following is a summary of certain provisions of each
Indenture and does not purport to be complete. Reference is made
to each Indenture for a complete statement of such provisions.
Certain capitalized terms used below are defined in each
Indenture and have the meanings given them in each Indenture.
Section references are to each Indenture. Wherever particular
sections or defined terms of each Indenture are referred to, such
sections or defined terms are incorporated by reference as part
of the statement made, and the statement is qualified in its
entirety by such reference.
The Prospectus Supplement will contain any additional or
revised information with respect to the senior and subordinated
debt outstanding as of the date of the Prospectus Supplement.
General
The Indentures do not limit the amount of debentures, notes
or other evidences of indebtedness which may be issued
thereunder. The Indentures provide that Debt Securities may be
issued from time to time in one or more series and may be
denominated and payable in foreign currencies or units based on
or relating to foreign currencies, including European Currency
Units ("ECUs"). Special United States federal income tax
considerations applicable to any Debt Securities so denominated
will be described in the relevant Prospectus Supplement. The
Debt Securities issued under the Senior Indenture will be
unsecured and will rank pari passu with all other unsecured and
unsubordinated obligations of ConAgra. The Debt Securities
issued under the Subordinated Indenture will be subordinate and
junior in right of payment to the extent and in the manner set
forth in the Subordinated Indenture to all Senior Indebtedness of
ConAgra (see "Subordination").
Reference is made to the Prospectus Supplement for the
following terms of the Debt Securities (to the extent such terms
are applicable to such Debt Securities and are not set forth
herein) offered pursuant thereto (the "Offered Debt Securities"):
(i) designation, aggregate principal amount, purchase price and
denomination; (ii) currency or currency units based on or
relating to currencies in which such Debt Securities are
denominated and/or in which principal (and premium, if any)
and/or any interest will or may be payable; (iii) the date of
maturity; (iv) interest rate or rates (or method by which such
rate will be determined), if any; (v) the dates on which any such
interest will be payable; (vi) the place or places where the
principal of and interest, if any, on the Offered Debt Securities
will be payable; (vii) any redemption or sinking fund provisions;
(viii) whether the Offered Debt Securities will be issuable in
registered form or bearer form and, if Offered Debt Securities in
bearer form are issuable, restrictions applicable to the exchange
of one form for another and to the offer, sale and delivery of
Offered Debt Securities in bearer form; (ix) whether and under
what circumstances ConAgra will pay additional amounts on Offered
Debt Securities held by a person which is not a U.S. person (as
defined in the Prospectus Supplement) in respect of any tax,
assessment or governmental charge withheld or deducted, and if
so, whether ConAgra will have the option to redeem such Debt
Securities rather than pay such additional amounts; and (x) any
other specific terms of the Offered Debt Securities, including
any additional events of default or covenants provided for with
respect to Offered Debt Securities, and any terms which may be
required by or advisable under United States laws or regulations.
Debt Securities may be presented for exchange, and
registered Debt Securities may be presented for transfer in the
manner, at the places and subject to the restrictions set forth
in the Debt Securities and the Prospectus Supplement. Such
services will be provided without charge, other than any tax or
other governmental charge payable in connection therewith, but
subject to the limitations provided in the Indenture. Debt
Securities in bearer form and the coupons, if any, appertaining
thereto will be transferable by delivery.
Debt Securities will bear interest at a fixed rate (a "Fixed
Rate Security") or a floating rate (a "Floating Rate Security").
Debt Securities bearing no interest or interest at a rate which,
at the time of issuance, is below the prevailing market rate,
will be sold at a discount below their stated principal amount.
Special United States federal income tax considerations
applicable to any such discounted Debt Securities or to certain
Debt Securities issued at par which are treated as having been
issued at a discount for United States federal income tax
purposes will be described in the relevant Prospectus Supplement.
Debt Securities may be issued, from time to time, with the
principal amount payable on any principal payment date, or the
amount of interest payable on any interest payment date, to be
determined by reference to one or more currency exchange rates,
commodity prices, equity indices or other factors. Holders of
such Debt Securities may receive a principal amount on any
principal payment date, or a payment of interest on any interest
payment date, that is greater than or less than the amount of
principal or interest otherwise payable on such dates, depending
upon the value on such dates of the applicable currency,
commodity, equity index or other factor. Information as to the
methods for determining the amount of principal or interest
payable on any date, the currencies, commodities, equity indices
or other factors to which the amount payable on such date is
linked and certain additional tax considerations will be set
forth in the applicable Prospectus Supplement.
The Indentures contain no covenants or other specific
provisions to afford protection to holders of the Debt Securities
in the event of a highly leveraged transaction or a change in
control of ConAgra, except to the limited extent (i) described
under "Limitations on Liens", "Limitation on Sale and Lease-Back
Transactions" and "Consolidation, Merger, Conveyance or Transfer"
below with respect to the Senior Indenture and (ii) described
under "Consolidation, Merger, Conveyance or Transfer" below with
respect to the Subordinated Indenture. Such covenants or
provisions are not subject to waiver by ConAgra's Board of
Directors without the consent of the holders of not less than a
majority in principal amount of Debt Securities of each series as
described under "Modification of Indenture" below.
Registered Global Securities
The registered Debt Securities of a series may be issued in
the form of one or more fully registered global Debt Securities
(a "Registered Global Security") that will be deposited with a
depositary (the "Depositary"), or with a nominee for a Depositary
identified in the Prospectus Supplement relating to such series.
In such cases, one or more Registered Global Securities will be
issued in a denomination or aggregate denominations equal to the
portion of the aggregate principal amount of outstanding
registered Debt Securities of the series to be represented by
such Registered Global Security or Securities. Unless and until
it is exchanged in whole or in part for Debt Securities in
definitive registered form, a Registered Global Security may not
be transferred except as a whole by the Depositary for such
Registered Global Security to a nominee of such Depositary or by
a nominee of such Depositary to such Depositary or another
nominee of such Depositary or by such Depositary or any such
nominee to a successor of such Depositary or a nominee of such
successor.
The specific terms of the depositary arrangement with
respect to any portion of a series of Debt Securities to be
represented by a Registered Global Security will be described in
the Prospectus Supplement relating to such series. ConAgra
anticipates that the following provisions will apply to all
depositary arrangements.
Upon the issuance of a Registered Global Security, the
Depositary for such Registered Global Security will credit, on
its book-entry registration and transfer system, the respective
principal amounts of the Debt Securities represented by such
Registered Global Security to the accounts of persons that have
accounts with such Depositary ("participants"). The accounts to
be credited shall be designated by any underwriters or agents
participating in the distribution of such Debt Securities or by
ConAgra if such Debt Securities are offered and sold directly by
ConAgra. Ownership of beneficial interest in a Registered Global
Security will be limited to participants or persons that may hold
interests through participants. Ownership of beneficial
interests in such Registered Global Security will be shown on,
and the transfer of that ownership will be effected only through,
records maintained by the Depositary for such Registered Global
Security (with respect to interests of participants) or by
participants or persons that hold through participants (with
respect to interests of persons other than participants). The
laws of some states require that certain purchasers of securities
take physical delivery of such securities in definitive form.
Such limits and such laws may impair the ability to transfer
beneficial interests in a Registered Global Security.
So long as the Depositary for a Registered Global Security,
or its nominee, is the registered owner of such Registered Global
Security, such Depositary or such nominee, as the case may be,
will be considered the sole owner or holder of the Debt
Securities represented by such Registered Global Security for all
purposes under the respective Indenture. Except as set forth
below, owners of beneficial interests in a Registered Global
Security will not be entitled to have the Debt Securities
represented by such Registered Global Security registered in
their names, will not receive or be entitled to receive physical
delivery of such Debt Securities in definitive form and will not
be considered the owners or holders thereof under the respective
Indenture.
Principal, premium, if any, and interest payments on Debt
Securities represented by a Registered Global Security registered
in the name of a Depositary or its nominee will be made to such
Depositary or its nominee, as the case may be, as the registered
owner of such Registered Global Security. None of ConAgra, the
Trustee under the respective Indenture or any paying agent for
such Debt Securities will have any responsibility or liability
for any aspect of the records to or payments made on account of
beneficial ownership interests in such Registered Global Security
or for maintaining, supervising or reviewing any records relating
to such beneficial ownership interests.
ConAgra expects that the Depositary for any Debt Securities
represented by a Registered Global Security, upon receipt of any
payment of principal, premium or interest, will immediately
credit participants' accounts with payments in amounts
proportionate to their respective beneficial interests in the
principal amount of such Registered Global Security as shown on
the records of such Depositary. ConAgra also expects that
payments by participants to owners of beneficial interest in such
Registered Global Security held through such participants will be
governed by standing instructions and customary practices, as is
now the case with the securities held for the accounts of
customers in bearer form registered in "street names," and will
be the responsibility of such participants.
If the Depositary for any Debt Securities represented by a
Registered Global Security is at any time unwilling or unable to
continue as Depositary and a successor Depositary is not
appointed by ConAgra within ninety days or an Event of Default
has occurred and is continuing with respect to such Debt
Securities, ConAgra will issue such Debt Securities in definitive
form in exchange for such Registered Global Security. In
addition, ConAgra may at any time and in its sole discretion
determine not to have the Debt Securities of a series represented
by one or more Registered Global Securities and, in such event,
will issue Debt Securities of such series in definitive form in
exchange for the Registered Global Securities or Securities
representing such Debt Securities.
Further, if ConAgra so specifies with respect to the Debt
Securities of a series, an owner of a beneficial interest in a
Registered Global Securities representing such Debt Securities
may, on terms acceptable to ConAgra and the Depositary for such
Registered Global Securities, receive such Debt Securities in
definitive form. In any such instance, an owner of a beneficial
interest in such a Registered Global Securities will be entitled
to have Debt Securities equal in principal amount to such
beneficial interest registered in its name and will be entitled
to physical delivery of such Debt Securities in definitive form.
Debt Securities so issued in definitive form will, except as set
forth in the applicable Prospectus Supplement, be issued in
denominations of $100,000 and integral multiples of $1,000 in
excess thereof and will be issued in registered form only without
coupons.
Certain Covenants of ConAgra in the Senior Indenture
The following restrictions apply to the Offered Debt
Securities issued under the Senior Indenture unless the
Prospectus Supplement provides otherwise.
Limitations on Liens
The Senior Indenture states that, unless the terms of any
series of Debt Securities provide otherwise, ConAgra will not and
will not permit any Consolidated Subsidiary to issue, assume or
guarantee any indebtedness for money borrowed ("Secured
Indebtedness") secured by a mortgage, pledge security interest or
other lien (a "Lien") upon or with respect to any Principal
Property or on the capital stock of any Consolidated Subsidiary
that owns Principal Property unless (a) ConAgra makes effective
provision whereby the Offered Debt Securities shall be secured by
such Lien equally and ratably with any and all other obligations
and indebtedness thereby secured, or (b) the aggregate amount of
all such Secured Indebtedness of ConAgra and its Consolidated
Subsidiaries, together with all Attributable Debt (as defined in
the Indenture) in respect of Sale and Lease-Back Transactions
existing at such time (with the exception of transactions which
are not subject to the limitation described in "Limitation on
Sale and Lease-Back Transactions" below), would not exceed 10% of
the net tangible assets (as defined in the Indenture) of ConAgra
and the Consolidated Subsidiaries, as shown on the audited
consolidated balance sheet contained in the latest annual report
to stockholders of ConAgra.
Such limitation will not apply to (a) any Lien existing on
any Principal Property at the date of the Indenture, (b) any Lien
created by a Consolidated Subsidiary in favor of ConAgra or any
wholly-owned Consolidated Subsidiary, (c) any Lien existing on
any asset of any corporation at the time such corporation becomes
a Consolidated Subsidiary or at the time such corporation is
merged or consolidated with or into ConAgra or a Consolidated
Subsidiary, (d) any lien on any asset existing at the time of
acquisition thereof, (e) any lien on any asset securing Secured
Indebtedness incurred or assumed for the purpose of financing all
or any part of the cost of acquiring or improving such asset, if
such Lien attaches to such asset concurrently with or without 180
days after the acquisition or improvement thereof, (f) any Lien
incurred in connection with pollution control, industrial revenue
or any similar financing or (g) any refinancing, extension,
renewal or replacement of any of the Liens described in this
paragraph if the principal amount of the Secured Indebtedness
secured thereby is not increased and is not secured by any
additional assets.
The Senior Indenture defines the term "Principal Property"
to mean, as of any date, any building structure or other facility
together with the land upon which it is erected and fixtures
comprising a part thereof, used primarily for manufacturing,
processing or production, in each case located in the United
States, and owned or leased or to be owned or leased by ConAgra
or any Consolidated Subsidiary, and in each case the net book
value of which as of such date exceeds 2% of the net tangible
assets (as defined in the Indenture) of ConAgra and the
Consolidated Subsidiaries, as shown on the audited consolidated
balance sheet contained in the latest annual report to
stockholders of ConAgra, other than any such land, building,
structure or other facility or portion thereof which, in the
opinion of the Board of Directors of ConAgra, is not of material
importance to the business conducted by ConAgra and its
Consolidated Subsidiaries, considered as one enterprise.
The Senior Indenture defines the term "Consolidated
Subsidiary" to mean a subsidiary of ConAgra the accounts of which
are consolidated with those of ConAgra in accordance with
generally accepted accounting principles. (Section 3.6)
Limitation on Sale and Lease-Back Transactions
The Senior Indenture states that, unless the terms of any
series of Debt Securities provide otherwise, neither ConAgra nor
any Consolidated Subsidiary may enter into any arrangement with
any person (other than ConAgra) providing for the leasing by
ConAgra or a Consolidated Subsidiary of any Principal Property
(except for temporary leases for a term of not more than three
years), which property has been or is to be sold or transferred
by ConAgra or a Consolidated Subsidiary to such person (herein
referred as a "Sale and Lease-Back Transaction"). (Sections 3.6
and 3.7)
Such limitation will not apply to any Sale and Lease-Back
Transaction if (a) the net proceeds to ConAgra or such
Consolidated Subsidiary from the sale or transfer equal or exceed
the fair value (as determined by the Board of Directors of
ConAgra) of the property so leased, (b) ConAgra or such
Consolidated Subsidiary would be entitled to incur indebtedness
secured by a Lien on the property to be leased as described in
"Limitation on Liens" above or (c) ConAgra, within 90 days of the
effective date of any such Sale and Lease-Back Transaction,
applies an amount equal to the fair value (as determined by the
Board of Directors of ConAgra) of the property so leased to the
retirement of Funded Indebtedness of ConAgra. (Section 3.7)
Subordination Under the Subordinated Indenture
The Debt Securities issued under the Subordinated Indenture
will be subordinate and junior in right of payment, to the extent
and in the manner set forth in the Subordinated Indenture, to all
"Senior Indebtedness" of ConAgra. The Subordinated Indenture
defines "Senior Indebtedness" as obligations (other than non-
recourse obligations or Debt Securities issued under the
Subordinated Indenture) of, or guaranteed or assumed by, ConAgra
for borrowed money or evidenced by bonds, debentures, notes or
other similar instruments, and amendments, renewals, extensions,
modifications and refundings of any such indebtedness or
obligation, whether existing as of the date of the Subordinated
Indenture or subsequently incurred by ConAgra. (Section 1.1 and
Article Thirteen)
In the event (a) of any insolvency or bankruptcy
proceedings, or any receivership, liquidation, or any proceedings
for liquidation, dissolution or other winding up of ConAgra or a
substantial part of its property, whether or not involving
insolvency or bankruptcy, or (b) that (i) a default shall have
occurred with respect to the payment of principal of (and
premium, if any) or interest on or other monetary amounts due and
payable on any Senior Indebtedness or (ii) there shall have
occurred an event of default (other than a default in the payment
of principal (or premium, if any) or interest, or other monetary
amounts due and payable) with respect to any Senior Indebtedness,
as defined therein or in the instrument under which the same is
outstanding, permitting the holder or holders thereof to
accelerate the maturity thereof (with notice or lapse of time, or
both), and such event of default shall have continued beyond the
period of grace, if any, in respect thereof, and, in the cases of
subclauses (i) and (ii) of this clause (b), such default or event
of default shall not have been cured or waived or shall not have
ceased to exist, or (c) that the principal of or the accrued
interest on the Debt Securities of any series shall have been
declared due and payable upon an Event of Default pursuant to
Section 5.1 of the Subordinated Indenture and such declaration
shall not have been rescinded and annulled as provided therein,
then the holders of all Senior Indebtedness shall first be
entitled to receive payment of the full amount due thereon, or
provision shall be made for such payment in money or money's
worth, before the holders of any of the Debt Securities issued
under the Subordinated Indenture are entitled to receive a
payment on account of the principal of (and premium, if any) or
any interest on the indebtedness evidenced by the Debt
Securities. (Section 13.1)
Events of Default
An Event of Default will occur under the applicable
Indenture with respect to Debt Securities of any series if (a)
ConAgra shall fail to pay when due any installment of interest on
any of the Debt Securities of such series and such default shall
continue for 30 days, (b) ConAgra shall fail to pay when due all
or any part of the principal of (and premium, if any, on) any of
the Debt Securities of such series (whether at maturity, upon
redemption, upon acceleration or otherwise), (c) ConAgra shall
fail to perform or observe any other term, covenant or agreement
contained in the Indenture (other than a covenant included in the
Indenture solely for the benefit of a series of Debt Securities
other than such series) for a period of 90 days after written
notice thereof, as provided in the Indenture, (d) certain events
of bankruptcy, insolvency or reorganization shall have occurred
or (e) ConAgra has not complied with any other covenant the
noncompliance with which would specifically constitute an Event
of Default with respect to Debt Securities of such series.
(Section 5.1)
Each Indenture provides that (a) if an Event of Default due
to the default in payment of principal of, or interest on, any
series of Debt Securities or due to the default in the
performance or breach of any other covenant or warranty of
ConAgra applicable to the Debt Securities of such series but not
applicable to all outstanding Debt Securities shall have occurred
and be continuing, either the Trustee or the holders of 25% in
principal amount of the Debt Securities of such series may then
declare the principal of all Debt Securities of such series and
interest accrued thereon to be due and payable immediately
(provided, with respect to Debt Securities issued under the
Subordinated Indenture, that the payment of principal and
interest on such Debt Securities of such series shall remain
subordinated to the extent provided in Article Thirteen of the
Subordinated Indenture), and (b) if an Event of Default due to
default in the performance of any other of the covenants or
agreements in the Indenture applicable to all outstanding Debt
Securities or due to certain events of bankruptcy, insolvency and
reorganization of ConAgra, shall have occurred and be continuing,
either the Trustee or the holders of 25% in principal amount of
all Debt Securities then outstanding (treated as one class) may
declare the principal of all Debt Securities and interest accrued
thereon to be due and payable immediately (provided, with respect
to Debt Securities issued under the Subordinated Indenture, that
the payment of principal and interest on such Debt Securities of
such series shall remain subordinated to the extent provided in
Article Thirteen of the Subordinated Indenture), but upon certain
conditions such declarations may be annulled and past defaults
may be waived (except a continuing default in payment of
principal of (or premium, if any) or interest on the Debt
Securities) by the holders of a majority in principal amount of
the Debt Securities of such series (or all series, as the case
may be) then outstanding. (Sections 5.1 and 5.10)
The holders of a majority in principal amount of the
outstanding Debt Securities of any series may direct the time,
method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power
conferred on the Trustee, provided that such direction shall not
be in conflict with any rule of law or the applicable Indenture.
(Section 5.9) Before proceeding to exercise any right of power
under the applicable Indenture at the direction of such holders,
the Trustee shall be entitled to receive from such holders
reasonable security or indemnity against the costs, expenses and
liabilities which might be incurred by it in compliance with any
such direction. (Section 5.6)
ConAgra will be required to furnish to the Trustee under
each Indenture annually a statement of certain officers of
ConAgra to the effect that, to the best of their knowledge,
ConAgra is not in default of the performance of the terms of the
Indenture or, if they have knowledge that ConAgra is in default,
specifying such default. (Section 3.5)
Each Indenture provides that no holder of Debt Securities
issued under the Indenture may institute any action against
ConAgra under the Indenture (except actions for payment of
overdue principal or interest) unless (a) the holder previously
shall have given to the Trustee written notice of default and
continuance thereof and unless the holders of not less than 25%
in principal amount of the Debt Securities of such affected
series issued under the Indenture and then outstanding shall have
requested the Trustee to institute such action and shall have
offered the Trustee reasonable indemnity, (b) the Trustee shall
not have instituted such action within 60 days of such request,
and (c) the Trustee shall not have received direction
inconsistent with such written request by the holders of a
majority in principal amount of the Debt Securities of such
affected series issued under the Indenture and then outstanding.
(Sections 5.6 and 5.9)
Each Indenture requires the Trustee to give to all holders
of outstanding Debt Securities of any series notice of any
default by ConAgra with respect to that series, unless such
default shall have been cured or waived; however, except in the
case of a default in the payment of principal of (and premium, if
any) or interest on any outstanding Debt Securities of that
series or in the payment of any sinking fund installment, the
Trustee is entitled to withhold such notice in the event that the
board of directors, the executive committee or a trust committee
of directors or certain officers of the Trustee in good faith
determines that withholding such notice is in the interest of the
holders of the outstanding Debt Securities of that series.
(Section 5.11)
Defeasance and Discharge
The following defeasance provision will apply to the Offered
Debt Securities unless the Prospectus Supplement provides
otherwise.
The Indenture provides that, unless the terms of any series
of Debt Securities provide otherwise, ConAgra will be discharged
from obligations in respect of the Indenture and the outstanding
Debt Securities of such series (including, with respect to the
Senior Indenture, its obligation to comply with the provisions
referred to under "Certain Covenants of ConAgra", if applicable,
but excluding under each Indenture certain other obligations,
such as the obligation to pay principal of (and premium, if any)
and interest on the Debt Securities of such series then
outstanding and obligations to register the transfer or exchange
of such outstanding Debt Securities and to replace stolen, lost
or mutilated certificates), upon the irrevocable deposit, in
trust, of cash or, in the case of Debt Securities payable only in
U.S. dollars, U.S. Government Obligations (as defined in the
Indenture) which through the payment of interest and principal
thereof in accordance with their terms will provide cash in an
amount sufficient to pay any installment of principal of (and
premium, if any) and interest on and mandatory sinking fund
payments in respect of such outstanding Debt Securities on the
stated maturity of such payments in accordance with the terms of
the Indenture and such outstanding Debt Securities provided that
ConAgra has received an opinion of counsel or officers'
certificate to the effect that such a discharge will not be
deemed, or result in, a taxable event with respect to holders of
the outstanding Debt Securities of such series and that certain
other conditions are met. In addition, with respect to the
Subordinated Indenture, in order to be discharged (i) no event or
condition shall exist that, pursuant to certain provisions
described under "Subordination" above, would prevent ConAgra from
making payments of principal of (and premium, if any) and
interest on the Debt Securities issued under the Subordinated
Indenture at the date of the irrevocable deposit referred to
above or at any time during the period ending on the 121st day
after such deposit date, and (ii) ConAgra delivers to the Trustee
under the Subordinated Indenture an opinion of counsel to the
effect that (a) the trust funds will not be subject to any rights
of holders of Senior Indebtedness, and (b) after the 121st day
following the deposit, the trust funds will not be subject to the
effect of any applicable bankruptcy, insolvency, reorganization
or similar laws affecting creditors' rights generally except that
if a court were to rule under any such law in any case or
proceeding that the trust refunds remained the property of
ConAgra, then the Trustee under the Subordinated Indenture and
the holders of the Debt Securities issued under the Subordinated
Indenture would be entitled to certain rights as secured
creditors in such trust funds. (Section 10.1)
Modification of the Indenture
Each Indenture provides that ConAgra and the Trustee may
enter into supplemental indentures without the consent of the
holders of Debt Securities to: (a) secure any Debt Securities,
(b) evidence the assumption by a successor corporation of the
obligations of ConAgra, (c) add covenants for the protection of
the holders of Debt Securities, (d) cure any ambiguity or correct
any inconsistency in the Indenture, (e) establish the form or
terms of Debt Securities of any series, and (f) evidence the
acceptance of appointment by a successor trustee. (Section 8.1)
Each Indenture also contains provisions permitting ConAgra
and the Trustee, with the consent of the holders of not less than
a majority in principal amount of Debt Securities of each series
then outstanding and affected, to add any provisions to, or
change in any manner or eliminate any of the provisions of, the
Indenture or modify in any manner the rights of the holders of
the Debt Securities of each series so affected, provided that
ConAgra and the Trustee may not, without the consent of the
holder of each outstanding Debt Security affected thereby, (a)
extend the stated maturity of the principal of any Debt Security,
or reduce the principal amount thereof or reduce the rate or
extend the time of payment of interest thereon, or reduce any
amount payable on redemption thereof or change the currency in
which the principal thereof (including any amount in respect of
original issue discount) or interest thereon is payable or reduce
the amount of any original issue discount security payable upon
acceleration or provable in bankruptcy or alter certain
provisions of the Indenture relating to Debt Securities not
denominated in U.S. dollars or impair the right to institute suit
for the enforcement of any payment on any Debt Security when due
or (b) reduce the aforesaid percentage in principal amount of
Debt Securities of any series the consent of the holders of which
is required for any such modification. (Section 8.2)
In addition, the Subordinated Indenture may not be amended
to alter the subordination of any of the outstanding Debt
Securities issued thereunder without the written consent of each
holder of Senior Indebtedness then outstanding that would be
adversely affected thereby. (Section 8.6 of the Subordinated
Indenture)
Consolidation, Merger, Conveyance or Transfer
ConAgra may, without the consent of the Trustee under the
applicable Indenture or the holders of Debt Securities,
consolidate or merge with, or convey, transfer or lease its
properties and assets substantially as an entirety to any other
corporation, provided that any successor corporation is organized
under the laws of the United States of America or any state
thereof and expressly assumes all obligations of ConAgra under
the Debt Securities and that certain other conditions are met,
and, thereafter, except in the case of a lease, ConAgra shall be
relieved of all obligations thereunder. (Article Nine)
Applicable Law
The Debt Securities and the Indenture will be governed by
and construed in accordance with the laws of the State of New
York. (Section 11.8)
Concerning the Trustee
The Chase Manhattan Bank (National Association) is the
Trustee under the Senior Indenture and is also the trustee under
a prior indenture between ConAgra and The Chase Manhattan Bank
(National Association). The First Trust National Association is
the Trustee under the Subordinated Indenture. First Bank System,
Inc. owns substantially all of the capital stock of such Trustee
and First Bank National Association. The Chase Manhattan Bank
(National Association) and First Bank National Association are
among a number of banks with which ConAgra and its subsidiaries
maintain ordinary banking relationships and with which ConAgra
and its subsidiaries maintain credit facilities.
PLAN OF DISTRIBUTION
Offered Securities may be sold (i) through agents, (ii)
through underwriters, including Smith Barney Shearson Inc., (iii)
through dealers or (iv) directly to purchasers (through a
specific bidding or auction process or otherwise).
Offers to purchase Offered Securities may be solicited by
agents designated by ConAgra from time to time. Any such agent
involved in the offer or sale of the Offered Securities will be
named, and any commissions payable by ConAgra to such agent will
be set forth, in the Prospectus Supplement. Unless otherwise
indicated in the Prospectus Supplement, any such agent will be
acting on a best efforts basis for the period of its appointment.
Any such agent may be deemed to be an underwriter, as that term
is defined in the Securities Act of 1933, as amended (the "1933
Act") of the Offered Securities so offered and sold. Agents may
be entitled under agreements which may be entered into with
ConAgra to indemnification by ConAgra against certain
liabilities, including liabilities under the 1933 Act, and may be
customers of, engaged in transactions with or perform services
for ConAgra in the ordinary course of business.
If an underwriter or underwriters are utilized in the sale
of Offered Securities, ConAgra will execute an underwriting
agreement with such underwriter or underwriters at the time an
agreement for such sale is reached, and the names of the specific
managing underwriter or underwriters, as well as any other
underwriters, and the terms of the transactions, including
compensation of the underwriters and dealers, if any, will be set
forth in the Prospectus Supplement, which will be used by the
underwriters to make resales of Offered Securities. The
underwriters may be entitled, under the relevant underwriting
agreement, to indemnification by ConAgra against certain
liabilities, including liabilities under the 1933 Act and such
underwriters or their affiliates may be customers of, engage in
transaction with or perform service for, ConAgra in the ordinary
course of business. Only underwriters named in the Prospectus
Supplement are deemed to be underwriters in connection with the
Offered Securities.
If a dealer is utilized in the sale of Offered Securities,
ConAgra will sell such Offered Securities to the dealer, as
principal. The dealer may then resell such Offered Securities to
the public at varying prices to be determined by such dealer at
the time of resale. Dealers may be entitled, under agreements
which may be entered into with ConAgra, to indemnification by
ConAgra against certain liabilities, including liabilities under
the 1933 Act and such dealers or their affiliates may be
customers of, extend credit to or engage in transactions with or
perform services for ConAgra in the ordinary course of business.
The name of the dealer and the terms of the transactions will be
set forth in the Prospectus Supplement relating thereto.
Offers to purchase Offered Securities may be solicited
directly by ConAgra and sales thereof may be made by ConAgra
directly to institutional investors or others. The terms of any
such sales, including the terms of any bidding or auction
process, if utilized, will be described in the Prospectus
Supplement relating thereto.
Offered Securities may also be offered and sold, if so
indicated in the Prospectus Supplement, in connection with a
remarketing upon their purchase, in accordance with a redemption
or repayment pursuant to their terms, or otherwise, by one or
more firms ("remarketing firms"), acting as principals for their
own accounts or as agents for ConAgra. Any remarketing firm will
be identified and the terms of its agreement, if any, with
ConAgra and its compensation will be described in the Prospectus
Supplement. Remarketing firms may be deemed to be underwriters
in connection with the Debt Securities remarketed thereby.
Remarketing firms may be entitled under agreements which may be
entered into with ConAgra to indemnification by ConAgra against
certain liabilities, including liabilities under the 1933 Act,
and may be customers of, engage in transactions with or perform
services for ConAgra in the ordinary course of business.
If so indicated in the Prospectus Supplement, ConAgra will
authorize agents and underwriters to solicit offers by certain
institutions to purchase Debt Securities from ConAgra at the
public offering price set forth in the Prospectus Supplement
pursuant to Delayed Delivery Contracts ("Contracts") providing
for payment and delivery on the date stated in the Prospectus
Supplement. Such Contracts will be subject to only those
conditions set forth in the Prospectus Supplement. A commission
indicated in the Prospectus Supplement will be paid to
underwriters and agents soliciting purchases of Debt Securities
pursuant to Contracts accepted by ConAgra.
EXPERTS
The financial statements and related financial statement
schedules incorporated in this prospectus by reference from
ConAgra's annual report on Form 10-K for the year ended May 30,
1993 have been audited by Deloitte & Touche, independent
auditors, as stated in their reports, which are incorporated
herein by reference, and have been so incorporated in reliance
upon the reports of such firm given upon their authority as
experts in accounting and auditing.
Documents incorporated herein by reference in the future
will include financial statements, related schedules (if
required) and auditors' reports, which financial statements and
schedules will have been examined to the extent and for the
period set forth in such reports by the firm or firms rendering
such reports, and, to the extent so examined and consent to
incorporation by reference is given, will be incorporated herein
by reference in reliance upon such reports given upon the
authority of such firms as experts in accounting and auditing.
LEGAL MATTERS
The validity of the Offered Securities other than Preferred
Securities offered hereby has been passed upon for ConAgra by
McGrath, North, Mullin & Kratz, P.C., Omaha, Nebraska 68102.
The validity of the Preferred Securities offered hereby have
been passed upon for ConAgra and ConAgra Capital by Dickinson,
Mackaman, Tyler & Hagen, P.C., Des Moines, Iowa.
Certain legal matters with respect to the Offered Securities
have been passed upon for the underwriters by Davis Polk &
Wardwell, New York, New York. Tax matters described under
"Certain United States Federal Income Tax Consequences" in this
Prospectus relating to the Preferred Securities have been passed
upon by Davis Polk & Wardwell, New York, New York.
No dealer, salesperson or other individual has been
authorized to give any information or to make any
representations, other than those contained in or incorporated by
reference in this Prospectus Supplement or the accompanying
Prospectus, in connection with the offer contained in this
Prospectus Supplement and the accompanying Prospectus, and, if
given or made, any such information or representation must not be
relied upon as having been authorized by the Company and ConAgra
or any underwriter, dealer or agent. This Prospectus Supplement
and the accompanying Prospectus do not constitute an offer to
sell or a solicitation of an offer to buy any of the securities
offered hereby by anyone in any jurisdiction in which such offer
or solicitation is not authorized or in which the person making
such offer or solicitation is not qualified to do so or to any
person to whom it is unlawful to make such offer or solicitation.
Neither the delivery of this Prospectus Supplement and the
accompanying Prospectus nor any sale made hereunder shall, under
any circumstances, create any implication that there has been no
change in the affairs of the Company or ConAgra since the date
hereof.
TABLE OF CONTENTS
Prospectus Supplement Page
ConAgra
ConAgra Capital, L.C.
Series A Preferred Securities
Certain Investment Considerations
Selected Financial Data of ConAgra
Use of Proceeds
Capitalization
Certain Terms of the Series B
Preferred Securities
Certain Terms of the Series B
Debentures
Certain United States Federal
Income Tax Consequences
Underwriting
Validity of Securities
Prospectus
Available Information
Incorporation of Certain Information
by Reference
The Company
ConAgra Capital
Use of Proceeds
Ratio of Earnings to Combined Fixed Charges
and Preferred Stock Dividends
Description of Preferred Securities
Description of the Limited Guarantee
Description of the Debentures
Certain United States Federal Income
Tax Consequences
Description of the Indentures
Plan of Distribution
Experts
Legal Matters
Preferred Securities
ConAgra Capital, L.C.
Series B Adjustable Rate Cumulative
Preferred Securities
(liquidation preference $25 per security)
guaranteed on a limited basis to the
extent set forth herein by
and exchangeable in certain limited
circumstances for debt securities of
ConAgra, Inc.
[ConAgra Logo]
PROSPECTUS SUPPLEMENT
Dated May ___, 1994
Smith Barney Shearson Inc.
Merrill Lynch & Co.
Dean Witter Reynolds Inc.
A.G. Edwards & Sons, Inc.
Goldman, Sachs & Co.
PaineWebber Incorporated
Salomon Brothers Inc
