By Paul A. Harris
Portland, Ore., March 1 – Less than a week after it postponed an offering of unsecured notes because of market volatility, BellRing Distribution, LLC priced an $840 million issue of eight-year senior notes (B3/B) at par to yield 7% on Tuesday, according to market sources.
The yield printed on top of both initial talk and official talk.
The tenor decreased from the 10-year maturity on the original offer.
At the close of books, the revived deal was playing to a $2 billion order book, a trader said.
The notes were trading at 101 1/8 bid, 101 5/8 offered at the Tuesday close, the source added.
J.P. Morgan Securities LLC was on the left of a syndicate of joint bookrunners.
The notes were offered in connection with Post Holdings, Inc.’s spinoff of its 80.1% interest in New BellRing to Post shareholders and the substantially concurrent completion of the related merger of a subsidiary of New BellRing into BellRing Brands, Inc.
The notes will be issued to Post as partial consideration for the transfer of certain assets to New BellRing by Post, including all of the equity interests held by Post in BellRing, BellRing Brands, LLC and cash.
Post will subsequently transfer the notes to certain of its lenders or their affiliates (the “selling noteholders”) to satisfy outstanding Post debt owed to the lenders.
New BellRing will use the cash received from Post, along with cash on hand and a draw on a new revolving credit facility that it will enter into as part of the transactions, to refinance BellRing LLC’s debt and to distribute cash to existing BellRing stockholders in connection with the merger.
The selling noteholders intend to offer the notes for resale, and will receive all of the proceeds from that resale.
BellRing Distribution is a St. Louis-based holding company operating in the global convenient nutrition category, offering ready-to-drink shake and powder protein products.
| Issuer: | BellRing Distribution, LLC
|
| Amount: | $840 million
|
| Issue: | Senior notes
|
| Maturity: | March 15, 2030
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 535 bps
|
| First call: | March 15, 2027 at 101.75
|
| Trade date: | March 1
|
| Settlement date: | March 10
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7%
|
|
|
© 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.
