By Paul A. Harris
Portland, Ore., April 21 – Performance Food Group Inc. priced an upsized $275 million issue of five-year senior notes (B2/B) at par to yield 6 7/8% in a Tuesday drive-by, according to market sources.
Credit Suisse Securities (USA) LLC was the lead left bookrunner. Joint bookrunners were Wells Fargo Securities LLC, BofA Securities Inc., BMO Capital Markets Corp., Capital One Securities Inc., J.P. Morgan Securities LLC and Rabo Securities.
The issue size increased from $250 million.
The yield printed at the tight end of both official yield talk and early guidance, which were set in the 7% area.
The Richmond, Va.-based foodservice distributor plans to use the proceeds for working capital and general corporate purposes.
| Issuer: | Performance Food Group Inc.
|
| Amount: | $275 million, increased from $250 million
|
| Maturity: | May 1, 2025
|
| Securities: | Senior notes
|
| Lead left bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | Wells Fargo Securities LLC, BofA Securities Inc., BMO Capital Markets Corp., Capital One Securities Inc., J.P. Morgan Securities LLC and Rabo Securities
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Spread: | 652 bps
|
| First call: | May 1, 2022 at 103.438
|
| Equity clawback: | 40% at 106.875 until May 1, 2022
|
| Trade date: | April 21
|
| Settlement date: | April 24
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7% area
|
| Marketing: | Drive-by
|
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