Fiesta Purchaser starts roadshow for $500 million notes backing buyout of Shearer’s Foods

By Paul A. Harris

Portland, Ore., Jan. 29 – Fiesta Purchaser, Inc. began marketing a $500 million offering of seven-year senior secured notes (expected ratings B3/B) backing the buyout of Shearer’s Foods on Monday, according to market sources.

Initial guidance has the notes coming to yield in the 8½% area.

The Rule 144A and Regulation S for life notes come with three years of call protection. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

Joint bookrunner UBS Securities LLC will bill and deliver. Deutsche Bank Securities Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., RBC Capital Markets LLC, TD Securities (USA) LLC and Goldman Sachs & Co. LLC are also joint bookrunners.

Citizens Capital Markets Inc., Macquarie Capital (USA) Inc., Mizuho Securities USA Inc., Natixis Securities Americas LLC, Rabo Securities USA Inc. and Stifel Nicolaus & Co. Inc. are the co-managers.

Proceeds will be used to support the buyout of Chip Intermediate Holding Co., LLC (Shearer’s Foods) by Clayton Dubilier & Rice, LLC from Ontario Teachers' Pension Plan Board and to repay Shearer’s debt.

Shearer's is an Ohio-based supplier to the snack industry.

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