By Cristal Cody
Tupelo, Miss., Oct. 15 – Conagra Brands, Inc. priced $7,025,000,000 of senior notes (Baa3/BBB/BBB-) in seven tranches on the tight side of guidance on Monday, according to a market source.
A $525 million tranche of two-year floating-rate notes priced at Libor plus 75 basis points.
Conagra sold $1.2 billion of 3.8% three-year notes at a spread of Treasuries plus 90 bps.
The company priced $1 billion of 4.3% notes due May 1, 2024 at a Treasuries plus 130 bps spread.
A $1 billion tranche of 4.6% notes due Nov. 1, 2025 was placed with a spread of 155 bps over Treasuries.
Conagra brought $1.3 billion of 4.85% 10-year notes at a spread of 170 bps over Treasuries.
A $1 billion tranche of 5.3% 20-year notes priced with a spread of 200 bps over Treasuries.
In the final tranche, Conagra sold $1 billion of 5.4% 30-year bonds at a Treasuries plus 210 bps spread.
A planned offering of three-year floating-rate notes was dropped from the final sale.
Goldman Sachs & Co. LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC and Mizuho Securities USA LLC were the bookrunners.
Proceeds will be used, along with the proceeds from a common stock sale, to fund the company’s planned merger with Pinnacle Foods Inc. and to repay borrowings under the company’s term loan facility and its commercial paper program.
Moody’s Investors Service dropped the company’s senior debt ratings by a notch on Monday to Baa3 following a review for downgrade after Conagra announced the merger, which is expected to close by the end of October.
The packaged food company is based in Chicago.
| Issuer: | Conagra Brands, Inc.
|
| Amount: | $7,025,000,000
|
| Description: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC and Mizuho Securities USA LLC
|
| Trade date: | Oct. 15
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Two-year floaters
|
| Amount: | $525 million
|
| Maturity: | Oct. 22, 2020
|
| Coupon: | Libor plus 75 bps
|
| Price talk: | Libor plus 80 bps area, plus or minus 5 bps; initially talked at Libor plus 95 bps area
|
|
|
| Three-year notes
|
| Amount: | $1.2 billion
|
| Maturity: | Oct. 22, 2021
|
| Coupon: | 3.8%
|
| Spread: | Treasuries plus 90 bps
|
| Price talk: | Treasuries plus 95 bps area, plus or minus 5 bps; initially talked at Treasuries plus 110 bps area
|
|
|
| 5.5-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 1, 2024
|
| Coupon: | 4.3%
|
| Spread: | Treasuries plus 130 bps
|
| Price talk: | Treasuries plus 135 bps area, plus or minus 5 bps; initially talked at Treasuries plus 140 bps area
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Maturity: | Nov. 1, 2025
|
| Coupon: | 4.6%
|
| Spread: | Treasuries plus 155 bps
|
| Price talk: | Treasuries plus 160 bps area, plus or minus 5 bps; initially talked at Treasuries plus 175 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.3 billion
|
| Maturity: | Nov. 1, 2028
|
| Coupon: | 4.85%
|
| Spread: | Treasuries plus 170 bps
|
| Price talk: | Treasuries plus 175 bps area, plus or minus 5 bps; initially talked at Treasuries plus 185 bps area
|
|
|
| 20-year notes
|
| Amount: | $1 billion
|
| Maturity: | Nov. 1, 2038
|
| Coupon: | 5.3%
|
| Spread: | Treasuries plus 200 bps
|
| Price talk: | Treasuries plus 205 bps area, plus or minus 5 bps; initially talked at Treasuries plus 220 bps area
|
|
|
| 30-year notes
|
| Amount: | $1 billion
|
| Maturity: | Nov. 1, 2048
|
| Coupon: | 5.4%
|
| Spread: | Treasuries plus 210 bps
|
| Price talk: | Treasuries plus 215 bps area, plus or minus 5 bps; initially talked at Treasuries plus 230 bps area
|
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