Performance Food to price $250 million five-year notes on Tuesday whispered in 7% area

By Paul A. Harris

Portland, Ore., April 21 – Performance Food Group Inc. expects to price a $250 million offering of five-year senior notes (B2/B) in a Tuesday drive-by following a mid-morning conference call with investors, according to market sources.

Initial talk has the notes coming to yield in the 7% area, a bond trader said.

Credit Suisse Securities (USA) LLC is the left lead bookrunner. Wells Fargo Securities LLC, BofA Securities Inc., BMO Capital Markets Corp., CAPFIN, J.P. Morgan Securities LLC and Rabo Securities are the joint bookrunners.

The Rule 144A and Regulation S notes become callable after two years at par plus 50% of coupon. They feature a two-year 40% equity clawback and a 101% poison put.

The Richmond, Va.-based foodservice distributor plans to use the proceeds for working capital and general corporate purposes.

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