New Issue: Heinz prices $2 billion 10-year secured notes at par to yield 4 7/8%

By Paul A. Harris

Portland, Ore., Jan. 24 – H.J. Heinz Co. priced a $2 billion issue of 10-year senior secured second-lien notes (B1/BB/BB) at par to yield 4 7/8% on Monday, according to a syndicate source.

The yield printed at the tight end of the 4 7/8% to 5% yield talk.

Wells Fargo Securities LLC was the left bookrunner for the quick-to-market deal. J.P. Morgan Securities LLC and Barclays were joint bookrunners.

The Pittsburgh-based food processing company plans to use the proceeds to repay a portion of the term loans outstanding under its senior secured credit facility.

Issuer:	H.J. Heinz Co.
Amount:	$2 billion
Maturity:	Feb. 15, 2025
Securities:	Second-lien senior secured notes
Left bookrunner:	Wells Fargo Securities, LLC
Joint bookrunners:	J.P. Morgan Securities LLC, Barclays
Co-managers:	Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, UBS Securities LLC, BB Securities Ltd., Banco Bradesco BBI SA, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Itau BBA USA Securities Inc., MUFG, PNC Capital Markets LLC, Rabo Securities USA Inc., RBC Capital Markets Corp., Standard Chartered Bank
Coupon:	4 7/8%
Price:	Par
Yield:	4 7/8%
Spread:	305 bps
First call:	Feb. 15, 2020 at 102.438
Trade date:	Jan. 26
Settlement date:	Jan. 30
Ratings:	Moody's: B1
	Standard & Poor's: BB
	Fitch: BB
Distribution:	Rule 144A for life and Regulation S
Price talk:	4 7/8% to 5%
Marketing:	Quick to market

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