By Paul A. Harris
St. Louis, Dec. 16 - Eurofresh Inc. priced $195 million of high-yield bonds in a Friday transaction, according to an informed source.
Banc of America Securities LLC had the books for the Rule 144A notes.
The Willcox, Ariz., greenhouse tomato producer priced a $170 million tranche of seven-year notes (B3/B-) at par to yield 11½%, on the wide end of the 11¼% to 11½% price talk.
Eurofresh also received $25 million in proceeds from its sale of eight-year senior subordinated discount notes (Caa2/CCC+). The discount notes priced at 56.594 to yield 14½%, on top of the price talk that had them coming in at around 300 basis points behind the senior notes.
Proceeds, along with proceeds from Eurofresh's new credit facility and the sale of stock, will be used to fund the recapitalization of the company.
| Issuer: | Eurofresh Inc.
|
| Amount: | $195 million
|
| Bookrunner: | Banc of America Securities LLC
|
| Trade date: | Dec. 16
|
| Settlement date: | Dec. 21
|
| Distribution: | Rule 144A
|
|
|
| Senior notes
|
| Amount: | $170 million
|
| Maturity: | Jan. 15, 2013
|
| Coupon: | 11½%
|
| Price: | Par
|
| Yield: | 11½%
|
| Spread: | 709 bps
|
| Call protection: | Four years
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | 11¼% to 11½%
|
|
|
| Discount notes
|
| Amount: | $25 million proceeds
|
| Maturity: | Jan. 15, 2014
|
| Coupon: | 0% for four years, then 14½%
|
| Price: | 56.594
|
| Yield: | 14½%
|
| Spread: | 1007 bps
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Price talk: | Around 300 bps behind the senior notes
|
|
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