Initial talk circulates on EG Group’s €1.26 billion equivalent six-year dollar, euro secured notes

By Paul A. Harris

Portland, Ore., Oct. 8 – The market heard early guidance in EG Group’s €1.26 billion equivalent offering of six-year senior secured notes (B2/B/B+), a bond trader said.

The deal comes in tranches of dollar-denominated notes with early guidance in the 8% area and euro-denominated notes with early guidance in the 6% area.

Tranche sizes remain to be announced.

The international roadshow is scheduled to wrap up on Thursday.

Left global coordinator Barclays will bill and deliver for the Rule 144A and Regulation S for life offering. Deutsche Bank and Morgan Stanley are joint global coordinators. Goldman Sachs, UBS, ING, Lloyds and Rabo are joint bookrunners.

The notes become callable after two years at par plus 50% of the respective coupons.

The issuing entity is EG Global Finance plc.

The deal comes in relation to the Blackburn England-based filling station and fast food outlet operator’s acquisition of Westborough, Mass.-based Cumberland Farms, which operates convenience stores in the northeastern United States and Florida.

EG plans to use the proceeds generated by the bond sale to fund the purchase consideration to Cumberland Farm’s existing stockholders, and to repay $300 million of outstanding Cumberland Farms senior notes due 2025.

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