New Issue: Diamond Foods prices $230 million five-year notes at par to yield 7%

By Paul A. Harris

Portland, Ore., Feb. 13 - Diamond Foods, Inc. priced a $230 million issue of five-year senior notes (Caa2/CCC+/) at par to yield 7% on Thursday, according to a syndicate source.

The yield printed at the tight end of the 7% to 7¼% yield talk.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Barclays, BMO Securities and SunTrust Robinson Humphrey Inc. were the joint bookrunners.

The San Francisco-based packaged food company plans to use the proceeds to refinance debt.

Issuer:	Diamond Foods, Inc.
Amount:	$230 million
Maturity:	March 15, 2019
Securities:	Senior notes
Bookrunners:	Credit Suisse Securities (USA) LLC, Barclays, Wells Fargo Securities LLC, BMO Capital Markets Corp., SunTrust Robinson Humphrey Inc.
Coupon:	7%
Price:	Par
Yield:	7%
Spread:	542 bps
First call:	March 15, 2016 at 103.5
Equity clawback:	35% at 107 until March 15, 2016
Change-of-control put:	101%
Trade date:	Feb. 13
Settlement date:	Feb. 19
Ratings:	Moody's: Caa2
	Standard & Poor's: CCC+
Distribution:	Rule 144A and Regulation S for life
Price talk:	7% to 7¼%
Marketing:	Roadshow

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