Published on 3/22/2013 in the Prospect News High Yield Daily.
New Issue: Heinz sells upsized $3.1 billion 71/2-year notes at par to yield 4¼%
By Paul A. Harris
Portland, Ore., March 22 - H.J. Heinz Co. priced an upsized $3.1 billion issue of 71/2-year second-lien senior secured notes (B1/BB-/BB) at par to yield 4¼% on Friday, according to a syndicate source.
The deal was upsized by $1 billion, and the yield printed on top of yield talk that was revised from earlier talk in the 4½% area.
Wells Fargo Securities LLC was the left bookrunner.
J.P. Morgan Securities LLC, Barclays and Citigroup Global Markets were the joint bookrunners.
Upon release from escrow, the proceeds will be used to help fund the acquisition of Heinz by Berkshire Hathaway and 3G Capital and to fund the repayment of existing debt.
The issuing entity is special purpose vehicle Hawk Acquisition Sub, Inc.
Heinz is a Pittsburgh-based food product company.
| Issuer: | Hawk Acquisition Sub, Inc. (H.J. Heinz Co.)
|
| Amount: | $3.1 billion, upsized from $2.1 billion
|
| Maturity: | Oct. 15, 2020
|
| Securities: | Second-lien senior secured notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc.
|
| Co-managers: | BB Securities Ltd., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Itau BBA International Ltd., Mitsubishi UFJ Securities (USA) Inc., PNC Capital Markets LLC, Rabo Securities USA Inc., RBC Capital Markets LLC, SMBC Nikko Capital Markets Ltd., UBS Securities LLC
|
| Coupon: | 4¼%
|
| Price: | Par
|
| Yield: | 4¼%
|
| Spread: | 297 bps
|
| First call: | April 15, 2015 at 102.125
|
| Trade date: | March 22
|
| Settlement date: | April 1
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 4¼%, revised from 4½% area
|
| Marketing: | Roadshow
|
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