By Paul A. Harris
Portland, Ore., July 12 – Performance Food Group Co. priced an upsized $1 billion issue of eight-year senior notes (B2/B+) at par to yield 4¼% in a Monday drive-by, according to market sources.
The issue size increased from $780 million.
The yield printed at the tight end of the 4¼% to 4½% yield talk. Initial guidance was in the mid-4% area.
The deal was heard to be half done in reverse inquiry, ultimately playing to an order book sized at $2 billion, a trader said.
BMO Capital Markets Corp. was the lead.
The Richmond, Va.-based food distribution services supplier plans to use proceeds, along with other financing, to pay the cash portion of its acquisition of Core-Mark Holding Co., Inc.
| Issuer: | Performance Food Group, Inc.
|
| Amount: | $1 billion, increased from $780 million
|
| Maturity: | Aug. 1, 2029
|
| Securities: | Senior notes
|
| Lead bookrunner: | BMO Capital Markets Corp.
|
| Coupon: | 4¼%
|
| Price: | Par
|
| Yield: | 4¼%
|
| Spread: | 302 basis points
|
| First call: | Aug. 1, 2024 at 102.125
|
| Trade date: | July 12
|
| Ratings: | Moody's: B2
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 4¼% to 4½%
|
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