Pinnacle Foods sets price talk for $650 million notes

By Michelle Anderson

Rochester, N.H., March 20 - Pinnacle Foods Finance LLC set the price talk for its $650 million two-tranche offering of notes (Caa2/CCC) on Tuesday, according to a market source.

The Cherry Hill, N.J.-based branded food products company talked its $400 million tranche of eight-year senior notes at 9% to 9¼%. The eight-year notes come with four years of call protection.

Meanwhile the company talked its $250 million tranche of 10-year senior subordinated notes at 10½% to 10¾%. The 10-year notes come with five years of call protection.

The books will close at 2 p.m. ET on Wednesday, with the notes expected to price thereafter.

Lehman Brothers and Goldman Sachs are joint bookrunners for the Rule 144A and Regulation S with registration rights deal.

Proceeds will be used to fund the leveraged buyout of Pinnacle by The Blackstone Group from J.P. Morgan Partners LLC, J.W. Childs Associates LP, CDM Group and former bondholders of Aurora Foods Inc.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.