By Andrea Heisinger
New York, Dec. 16 - Kraft Foods Inc. priced $500 million of 6.75% five-year notes Tuesday to yield Treasuries plus 525 basis points, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa2/BBB+/BBB) priced at 99.896 to yield 6.777%.
The issue priced at the tight end of talk, which was in the mid-500 bps area, a source close to the deal said.
The notes feature a change-of-control put of 101%.
Bookrunners were BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and RBS Greenwich Capital.
Senior co-managers were Mizuho Securities USA Inc., Banca IMI SpA and BBVA Securities Inc. Co-manager was Loop Capital Markets LLC.
Proceeds will be used for general corporate purposes, including repayment of outstanding commercial paper.
The food company is based in Northfield, Ill.
| Issuer: | Kraft Foods Inc.
|
| Issue: | Notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 19, 2014
|
| Bookrunners: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBS Greenwich Capital
|
| Senior co-managers: | Mizuho Securities USA Inc., Banca IMI SpA and BBVA Securities Inc.
|
| Co-manager: | Loop Capital Markets LLC
|
| Coupon: | 6.75%
|
| Price: | 99.896
|
| Yield: | 6.777%
|
| Spread: | Treasuries plus 525 bps
|
| Change-of-control put: | 101%
|
| Distribution: | SEC registered
|
| Trade date: | Dec. 16
|
| Settlement date: | Dec. 19
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB+
|
| Fitch: BBB
|
| Price talk: | Mid-500 bps area
|
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