Performance Food talks $350 million eight-year notes to yield 5½%-5¾%; pricing Thursday

By Paul A. Harris

Portland, Ore., May 11 – Performance Food Group, Inc. talked its $350 million offering of eight-year senior notes (B2/BB-) to yield 5½% to 5¾%, a syndicate source said on Wednesday.

Official talk comes inside of earlier 5¾% to 6¼% guidance.

Books close at 2:30 p.m. ET on Thursday, and the Rule 144A and Regulation S for life deal is set to price thereafter.

Credit Suisse Securities (USA) LLC, Barclays, Wells Fargo Securities LLC, BMO Securities, Blackstone, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon and feature a 40% equity clawback until 180 days after the close of an equity offering. The notes also feature a 101% poison put.

The Richmond, Va.-based foodservice distributor plans to use the proceeds to refinance bank debt.

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