Greece's FAGE Dairy boosts talk on $250 million add-on notes to 101

By Paul A. Harris

Portland, Ore., Dec. 11 - FAGE International SA and FAGE USA Dairy Industry Inc. boosted price talk on a $250 million add-on to their 9 7/8% senior notes due Feb. 1, 2020 (confirmed B3/existing B) to 101 on Tuesday, according to an informed source.

The new talk is 50 cents richer than the rich end of earlier official talk of 100 to 100.5.

The deal is expected to price on Wednesday.

Citigroup Global Markets Inc. is the bookrunner for the Rule 144A and Regulation S offering.

The notes become callable on Feb. 1, 2015 at 104.938.

The notes feature incurrence covenants that are the same as the existing notes, primarily amended to achieve ring-fencing of FAGE's Greek operations and to reflect the U.S. dollar as FAGE's new reporting currency.

The Athens-based dairy company plans to use the proceeds to refinance its existing senior notes due 2015, to refinance other debt facilities, to fund capital expenditures and for general corporate purposes.

The original $150 million issue priced at 93.278 to yield 11% in January 2010.

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