British retailer Iceland starts roadshow for £475 million equivalent two-part secured notes

By Paul A. Harris

Portland, Ore., July 24 – British frozen food retailer Iceland started a brief roadshow on Monday for a £475 million equivalent two-part offering of Iceland BondCo plc senior secured notes due December 2027 (//B+), according to a market source.

The Rule 144A and Regulation S for life deal comes in sterling-denominated fixed-rate notes with initial talk in the mid-to-high 11% area and euro-denominated floating-rate notes with initial talk of Euribor plus 550 basis points at 96 to 97.

The first call on the fixed-rate notes comes after two years at par plus 50% of the coupon. The first call on the floating-rate notes comes after one year at 101.

Physical bookrunner HSBC will bill and deliver and will provide logistical services for the notes sale. JPMorgan is also a physical bookrunner.

Proceeds plus £25 million of cash on hand will be used to repay £500 million of the company’s outstanding senior secured notes due 2025 including accrued and unpaid interest.

Iceland, a multi-channel food retailer specializing in frozen food, maintains headquarters in Deeside, U.K.

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