Brake Bros. £275 million 5.5-year PIK note/loan talked at L+775-800 bps

By Paul Deckelman

New York, Sept. 26 - Brake Bros. plc's upcoming £275 million offering of 5.5-year senior payment-in-kind loans/notes is expected to price with a coupon of 775 to 800 basis points over Libor at a price of 99, junk market syndicate sources said Tuesday.

The deal is being brought to market via joint bookrunners JP Morgan, Credit Suisse and Deutsche Bank Securities following a short roadshow that began on Monday in London. Books will close at noon Wednesday, London time, with pricing expected sometime after.

Under the deal's unusual structure, it will be distributed as a loan, and also as notes via a re-packaging, with the details of that transaction to be determined.

Brake Bros., a food supplier and distributor based in Ashford, England, expects to use the deal's proceeds to fund a dividend and make a payment on its pension deficit.

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