Published on 1/25/2021 in the Prospect News High Yield Daily.
New Issue: US Foods sells upsized $900 million 4¾% eight-year notes at par
By Paul A. Harris
Portland, Ore., Jan. 25 – US Foods, Inc. priced an upsized $900 million issue of eight-year senior notes (Caa1/B+) at par to yield 4¾% in a Monday drive-by, according to market sources.
The issue size increased from $300 million.
The yield printed at the tight end of the 4¾% to 5% yield talk. Initial guidance was in the low 5% area.
Citigroup Global Markets Inc. was the lead bookrunner. Joint bookrunners were KKR Capital Markets LLC, BofA Securities Inc., Wells Fargo Securities LLC, Fifth Third Securities Inc., Truist Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BMO Capital Markets Corp., ING Financial Markets LLC, Rabo Securities USA Inc. and U.S. Bancorp Investments Inc.
Rosemont, Ill.-based foodservice distributor plans to use the proceeds to repay its 5 7/8% senior notes due 2024 and to repay all of its outstanding senior secured term loans maturing on April 24, 2025.
| Issuer: | US Foods, Inc.
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| Amount: | $900 million
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| Maturity: | Feb. 15, 2029
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| Securities: | Senior notes
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| Lead bookrunner: Citigroup Global Markets Inc.
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| Joint bookrunners: | KKR Capital Markets LLC, BofA Securities Inc., Wells Fargo Securities LLC, Fifth Third Securities Inc., Truist Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BMO Capital Markets Corp., ING Financial Markets LLC, Rabo Securities USA Inc. and U.S. Bancorp Investments Inc.
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| Coupon: | 4¾%
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| Price: | Par
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| Yield: | 4¾%
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| Spread: | 403 bps
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| First call: | Feb. 15, 2024 at 102.375
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| Trade date: | Jan. 25
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| Settlement date: | Feb. 4
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| Ratings: | Moody's: Caa1
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| S&P: B+
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 4¾% to 5%
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| Marketing: | Drive-by
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