Performance Foods talks $550 million seven-year senior notes at discount and 10½% area yield

By Paul A. Harris

St. Louis, Nov. 22 - Performance Foods Group, Inc. talked its $550 million offering of seven-year senior notes with a 10½% area yield, at a discount, on Monday, according to an informed source.

The books close at noon ET on Tuesday.

Credit Suisse, Wells Fargo Securities, Bank of America Merrill Lynch and Macquarie are the joint bookrunners for the Rule 144A and Regulation S notes.

The notes become callable in three years at par plus 75% of the coupon. The notes also come with a three-year 35% equity clawback and a 101% poison put.

Proceeds will be used to refinance mezzanine debt and to fund a dividend.

The prospective issuer is a Richmond, Va.-based distributor specializing in broadline distribution, customized distribution, and processing/delivering fresh-cut produce throughout the United States.

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