By Paul A. Harris
St. Louis, Feb. 17 - Associated British Foods plc has priced a massively upsized $610 million equivalent multi-tranche private placement of notes (NAIC-2), according to a market source.
The placement included $120 million of 6.34% four-year notes, $165 million of 6.7% five-year notes, $120 million of 7.27% seven-year notes and $60 million of 7.73% 10-year notes.
All of the dollar-denominated notes were priced at spreads of Treasuries plus 475 bps, on the tight end of the Treasuries plus 475 bps to 500 bps price talk.
The placement also included £2 million of five-year notes, which priced at Gilts plus 410 bps; £15 million of eight-year notes at Gilts plus 425 bps; £40 million of 10-year notes at Gilts plus 425 bps; and £25 million of 12-year notes at Gilts plus 410 bps.
The placement featured one euro-denominated tranche: €20 million of five-year notes, which priced at mid-swaps plus 400 bps.
Banc of America Securities LLC and RBS Greenwich Capital were the placement agents for the deal, which had been launched at around $200 million.
The issuer is a London-based international foods, ingredients and retail group.
| Issuer: | Associated British Foods plc
|
| Total amount: | $610 million equivalent
|
| Call protection: | Non-callable
|
| Rating: | NAIC-2
|
| Placement agents: | Banc of America Securities LLC and RBS Greenwich Capital
|
| Price guidance: | 475 to 500 bps (dollar-denominated tranches only)
|
|
|
| Dollar-denominated four-year notes
|
| Amount: | $120 million
|
| Coupon: | 6.34%
|
| Spread: | Treasuries plus 475 bps
|
|
|
| Dollar-denominated five-year notes
|
| Amount: | $165 million
|
| Coupon: | 6.7%
|
| Spread: | Treasuries plus 475 bps
|
|
|
| Dollar-denominated seven-year notes
|
| Amount: | $120 million
|
| Coupon: | 7.27%
|
| Spread: | Treasuries plus 475 bps
|
|
|
| Dollar-denominated 10-year notes
|
| Amount: | $60 million
|
| Coupon: | 7.73%
|
| Spread: | Treasuries plus 475 bps
|
|
|
| Sterling-denominated five-year notes
|
| Amount: | £2 million
|
| Spread: | Gilts plus 410 bps
|
|
|
| Sterling-denominated eight-year notes
|
| Amount: | £15 million
|
| Spread: | Gilts plus 425 bps
|
|
|
| Sterling-denominated 10-year notes
|
| Amount: | £40 million
|
| Spread: | Gilts plus 425 bps
|
|
|
| Sterling-denominated 12-year notes
|
| Amount: | £25 million
|
| Spread: | Gilts plus 410 bps
|
|
|
| Euro-denominated five-year notes
|
| Amount: | €20 million
|
| Spread: | Mid-swaps plus 400 bps
|
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