By Paul A. Harris
Portland, Ore., Oct. 11 – EG Group priced six-year senior secured notes (B2/B/B+) in two tranches on Friday, according to market sources.
The deal featured $635 million of notes that priced at par to yield 8½% and €700 million of notes that priced at par to yield 6¼%.
The dollar notes priced at the tight end of the 8½% to 8¾% talk. The euro-denominated notes priced at the tight end of the 6¼% to 6½% talk.
Left global coordinator Barclays will bill and deliver. Deutsche Bank and Morgan Stanley are joint global coordinators.
The notes were issued via EG Global Finance plc.
The deal came 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.
| Issuer: | EG Global Finance plc
|
| Maturity: | Oct. 30, 2025
|
| Securities: | Senior secured notes
|
| Left global coordinator: | Barclays (bill and deliver)
|
| Joint global coordinators: | Deutsche Bank and Morgan Stanley
|
| Joint bookrunners: | Goldman Sachs, UBS, ING, Lloyds and Rabo
|
| Trade date: | Oct. 11
|
| Settlement date: | Oct. 21
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Fitch: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Dollar notes
|
| Amount: | $635 million
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8½%
|
| Call protection: | Two years
|
| Price talk: | 8½% to 8¾%
|
|
|
| Euro notes
|
| Amount: | €700 million
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Call protection: | Two years
|
| Price talk: | 6¼% to 6½%
|
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