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British food retailer Iceland launches £475 million equivalent notes in sterling, euro tranches
By Paul A. Harris
Portland, Ore., July 26 – British frozen food retailer Iceland set price talk in its £475 million equivalent two-part offering of Iceland BondCo plc senior secured notes due December 2027 (B3/B/B+), according to a market source.
The Rule 144A and Regulation S for life deal features a £265 million tranche of fixed-rate notes launched with a 10 7/8% coupon at 99.205 to yield 11 1/8%. The launch yield comes 12.8 basis points inside of the 11¼% to 11½% yield talk. Initial guidance was in the mid-to-high 11% area.
The deal also features €250 million of floating-rate notes launched with a 550 bps spread to Euribor at 97. The launch spread comes on top of spread talk and initial guidance. The launch price comes on top of price talk and at the rich end of the 96 to 97 initial guidance.
Allocations are expected later Wednesday.
The first call on the fixed-rate notes comes in December 2024 at 105.438. The first call on the floating-rate notes comes in December 2024 at 101.
Physical bookrunner HSBC will bill and deliver and will provide logistical services for the notes sale. JPMorgan is also a physical bookrunner.
Proceeds plus £25 million of cash on hand will be used to repay £500 million of the company’s outstanding senior secured notes due 2025, including accrued and unpaid interest.
Iceland, a multi-channel food retailer specializing in frozen food, maintains headquarters in Deeside, U.K.
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