EG Group sets talk in €1.26 billion equivalent dollar/euro secured notes offering; pricing Friday

By Paul A. Harris

Portland, Ore., Oct. 10 – EG Group set price talk in its €1.26 billion equivalent two-part offering of six-year senior secured notes (B2/B/B+), according to market sources.

The deal features dollar-denominated notes talked to yield 8½% to 8¾% and euro-denominated notes talked to yield 6¼% to 6½%

Tranche sizes remain to be determined.

Early Thursday afternoon the dollar-denominated portion of the deal was heard to be playing to $800 million of demand, a bond trader said.

Books for the euro-denominated notes close at 7 a.m. ET on Friday. Books for the dollar-denominated tranche are set to close at 9 a.m. ET on Friday.

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 Farms’ existing stockholders and to repay $300 million of outstanding Cumberland Farms senior notes due 2025.

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