New Issue: Hormel Foods sells $500 million 4.8% three-year notes at Treasuries plus 50 bps

By Wendy Van Sickle

Columbus, Ohio, March 5 – Hormel Foods Corp. priced $500 million of 4.8% three-year notes (A1/A-) on Tuesday at 99.903 to yield 4.833%, or a spread of 50 basis points over Treasuries, according to an FWP filed with the Securities and Exchange Commission.

BofA Securities, Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were the bookrunners.

Proceeds will be used with cash on hand to repay the $950 million principal amount outstanding of the company’s 0.65% senior notes due June 3, 2024. Any remaining proceeds may be used for other general corporate purposes.

Hormel is an Austin, Minn.-based manufacturer and marketer of meat and food products.

Issuer:	Hormel Foods Corp.
Amount:	$500 million
Issue:	Notes
Maturity:	March 30, 2027
Bookrunners:	BofA Securities, Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
Co-managers:	Siebert Williams Shank & Co., LLC, Barclays and PNC Capital Markets LLC
Trustee:	U.S. Bank Trust Co., NA
Counsel to issuer:	Faegre Drinker Biddle & Reath LLP
Counsel to underwriters:	Davis Polk & Wardwell LLP
Coupon:	4.8%
Price:	99.903
Yield:	4.833%
Spread:	Treasuries plus 50 bps
Call features:	Make-whole call before Feb. 28, 2027 at price equal to greater of par and Treasuries plus 10 bps; thereafter at par
Trade date:	March 5
Settlement date:	March 8
Ratings:	Moody’s: A1
	S&P: A-
Distribution:	SEC registered
Cusip:	440452AK6

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