SunOpta talks $330 million notes due 2022 at discount to yield 10%; pricing expected Wednesday

By Paul A. Harris

Portland, Ore., Oct. 6 – SunOpta Foods Inc. talked its $330 million offering of senior secured second-lien notes due 2022 (B3/B) at a to-be-determined discount to yield 10%, according to a syndicate source.

The deal is expected to price Wednesday afternoon.

BMO Securities, Jefferies LLC and Rabobank are the joint bookrunners.

The notes have Rule 144A for life and Regulation S formats and will be privately placed in Canada.

The securities come with three years of call protection. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The Toronto-based vertically integrated global company plans to use the proceeds, together with the proceeds from a common share offering and borrowings under its existing credit facilities, to fund the acquisition of Sunrise Holdings (Delaware), Inc.

SunOpta focuses on sourcing non-genetically modified and organic ingredients and manufacturing healthy food and beverage products.

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