H.J. Heinz talks benchmark nine-part offering for Kraft merger; pricing Tuesday

By Aleesia Forni

Virginia Beach, June 23 – H.J. Heinz Co. is planning to price a benchmark bond offering (Baa3/BBB-/) in nine tranches on Tuesday, according to a market source.

The sale includes two-year notes talked in the 110 basis points area over Treasuries, and a two-year floater talked at the Libor equivalent.

A three-year note is talked in the area of Treasuries plus 120 bps. A floating-rate three-year note is talked at the Libor equivalent.

There is also a five-year note talked in the area of Treasuries plus 140 bps, a seven-year note talked in the Treasuries plus 165 bps area, a 10-year note talked in the 180 bps area, and a 20-year note talked in the area of Treasuries plus 210 bps.

A 30-year tranche is talked at the Treasuries plus 225 bps area.

Proceeds will be used to fund the company’s merger with Kraft Foods Group Inc., which will be renamed Kraft Heinz Foods Co.

Barclays, J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Wells Fargo Securities LLC are bookrunners for the Rule 144A and Regulation S deal.

Heinz is a Pittsburgh-based food processing company. Kraft is a Northfield, Ill.-based food company.

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