Published on 8/9/2021 in the Prospect News Investment Grade Daily.
New Issue: Conagra Brands sells $500 million 0.5% two-year senior notes at 99.812
By Cristal Cody
Chicago, Aug. 9 – Conagra Brands, Inc. sold a $500 million offering of 0.5% two-year notes at 99.812 (Baa3/BBB-/BBB-) on Monday, according to an FWP filing with the Securities and Exchange Commission and details from a market source earlier in the day.
The yield on the discounted notes is 0.595%, priced with a Treasuries plus 37.5 basis points spread. The notes priced low to talk in the Treasuries plus 60 bps area.
The notes have a make-whole call at Treasuries plus 10 bps until Aug. 11, 2022, then a par call.
BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes, including the repayment of borrowings under the company’s commercial paper program. As of Aug. 5, the company had $974.6 million of borrowings outstanding under its commercial paper program with an average weighted interest rate of 0.29% and an average weighted maturity of 21 days.
Conagra is a food company based in Chicago.
| Issuer: | Conagra Brands, Inc.
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| Issue: | Senior notes
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| Amount: | $500 million
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| Maturity: | Aug. 11, 2023
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| Bookrunners: | BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC
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| Senior co-managers: | MUFG and Wells Fargo Securities, LLC
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| Co-managers: | Barclays, HSBC Securities (USA) Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments, Inc., BNP Paribas Securities Corp., Rabo Securities USA, Inc., RBC Capital Markets, LLC and Truist Securities, Inc.
|
| Coupon: | 0.5%
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| Price: | 99.812
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| Yield: | 0.595%
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| Spread: | Treasuries plus 37.5 bps
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| Call features: | Make-whole call at Treasuries plus 10 bps until Aug. 11, 2022; then par call
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| Change of control: | At 101
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| Trade date: | Aug. 9
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| Settlement date: | Aug. 12
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
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| Price talk: | Treasuries plus 60 bps area
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