By Paul A. Harris
Portland, Ore., Dec. 12 - Simmons Foods, Inc. priced a $50 million add-on to its 10½% second-lien senior secured notes due Nov. 1, 2017 (Caa1/CCC) at 104.75 to yield 8.59% on Thursday, according to an informed source.
The reoffer price came on top of price talk.
Wells Fargo Securities LLC was the left bookrunner. BMO Capital Markets Corp. is the joint bookrunner.
The Fayetteville, Ark.-based poultry processor and pet-food maker plans to use the proceeds to repay a portion of its first-lien senior secured credit facility.
In addition to Simmons Foods, Inc., the issuing entities include Simmons Pet Food, Inc., Pro*Cal, Inc., Simmons Feed Ingredients, Inc., Simmons Custom Processing, Inc., Simmons Prepared Foods, Inc. and Simmons Energy Solutions, Inc.
| Issuer: | Simmons Foods, Inc.
|
| Face amount: | $50 million
|
| Proceeds: | $52 million
|
| Maturity: | Nov. 1, 2017
|
| Security description: | Add-on to 10½% senior secured notes due Nov. 1, 2017
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunner: | BMO Capital Markets Corp.
|
| Coupon: | 10½%
|
| Price: | 104.75
|
| Yield to worst: | 8.59%
|
| Spread: | 799 bps
|
| First call: | Nov. 1, 2014 at 105.25
|
| Trade date: | Dec. 12
|
| Settlement date: | Dec. 17
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC
|
| Distribution: | Rule 144A for life
|
| Price talk: | 104.75 area
|
| Marketing: | Quick to market
|
| Original issue: | $265million priced at par in October 2010
|
| Fungibility; | Add-on notes will be immediately fungible with the existing notes
|
| Total issue size: | $315 million
|
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