By Paul A. Harris
Portland, Ore., Sept. 16 – Performance Food Group Co. priced a $1.06 billion issue of eight-year senior notes (B1/B+) at par to yield 5½% in a quick-to-market Monday trade, according to market sources.
The yield printed at the tight end of the 5½% to 5¾% yield talk. Initial talk was in the mid-to-high 5% area, a source said.
The deal played to massive demand, according to an investor, who added that the order book was heard to be seven-times oversubscribed.
Credit Suisse Securities (USA) LLC was the left lead bookrunner. Joint bookrunners are Wells Fargo Securities LLC, BofA Securities Inc., Barclays, BMO Capital Markets, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Rabo Securities USA Inc., U.S. Bancorp Investments Inc. and Capital One Securities Inc.
The Richmond, Va.-based foodservice distribution company plans to issue via its wholly owned subsidiary, PFG Escrow Corp., and use the proceeds to help fund the acquisition of Reinhart Foodservice, LLC from Reyes Holdings, LLC.
| Issuer: | PFG Escrow Corp.
|
| Amount: | $1.06 billion
|
| Maturity: | Oct. 15, 2027
|
| Securities: | Senior notes
|
| Left lead books: | Credit Suisse Securities (USA) LLC
|
| Joint books: | Wells Fargo Securities LLC, BofA Securities Inc., Barclays, BMO Capital Markets, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Rabo Securities USA Inc., U.S. Bancorp Investments Inc. and Capital One Securities Inc.
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 369 bps
|
| First call: | Oct. 15, 2022 at 102.75
|
| Equity clawback: | 40% at 105.5 until Oct. 15, 2022
|
| Trade date: | Sept. 16
|
| Settlement date: | Sept. 27
|
| Ratings: | Moody's: B1
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 5½% to 5¾%
|
| Marketing: | Quick to market
|
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