Freshpet talks $350 million five-year convertibles to yield 2.5%-3%, up 27.5%-32.5%

By Abigail W. Adams

Portland, Me., March 14 – Freshpet Inc. plans to price $350 million of five-year convertible notes after the market close on Wednesday with price talk for a coupon of 2.5% to 3% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

BofA Securities Inc. and Goldman Sachs & Co. LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $52.5 million.

The notes are non-callable until April 3, 2026 and then subject to a 130% hurdle.

They are putable upon a fundamental change.

In connection with the offering, the company will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes.

Freshpet is a Secaucus, N.J.-based pet food company.

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