By Paul A. Harris
Portland, Ore., June 14 – Ingles Markets, Inc. priced a $350 million issue of 10-year senior notes (Ba2/BB) at par to yield 4% in a Monday drive-by, according to market sources.
The yield printed at the tight end of price talk in the 4 1/8% area. Initial guidance was in the low-to-mid 4% area.
The deal was driven by $200 million of reverse inquiry and was doing conspicuously well on the break, at 101 bid, 101½ offered, a trader said.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were Truist Securities Inc. and J.P. Morgan Securities LLC.
The supermarket chain, which is incorporated in North Carolina, plans to use the proceeds to pay off its 5¾% senior notes due 2023, as well as the outstanding balance under its line of credit.
| Issuer: | Ingles Markets, Inc.
|
| Amount: | $350 million
|
| Maturity: | June 15, 2031
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Securities Inc.
|
| Joint bookrunners: | Truist Securities Inc. and J.P. Morgan Securities LLC
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Spread: | 251 bps
|
| First call: | June 15, 2031 at 102
|
| Trade date: | June 14
|
| Settlement date: | June 17
|
| Ratings: | Moody's: Ba2
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 4 1/8% area
|
| Marketing: | Drive-by
|
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