By Cristal Cody
Chicago, Jan. 16 – Bimbo Bakeries USA, Inc. sold $1.25 billion of senior notes in two parts (Baa1/BBB+/BBB+), according to a market source and multiple press releases.
The deal included a $450 million tap on the 6.05% notes due 2029.
Bimbo also priced $800 million of new 5 3/8% senior notes due 2036.
The new notes priced at Treasuries plus 125 basis points after talk in the 180 bps area.
The notes are guaranteed by Grupo Bimbo SAB de CV (Grupo Bimbo), Bimbo SA de CV and Barcel SA de CV.
BofA Securities, Citigroup, J.P. Morgan, Mizuho, MUFG, and Rabo Securities were bookrunners.
The deal was 5.8 times oversubscribed, according to the issuer.
The proceeds will be used for general corporate purposes, which may include capital investments; strategic investments; refinancing, the buyback, termination or repayment of debt; and working capital.
The issuer is the U.S. corporate arm of the Mexican multinational bakery company and is based in Horsham Township, Pa.
| Issuer: | Bimbo Bakeries USA, Inc.
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| Guarantors: | Grupo Bimbo SAB de CV, Bimbo SA de CV and Barcel SA de CV
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| Amount: | $1.25 billion
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| Issue: | Senior notes
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| Bookrunners: | BofA Securities, Citigroup, J.P. Morgan, Mizuho, MUFG, and Rabo Securities
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| Counsel to underwriters: | Cleary Gottlieb and Ritch Mueller
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| Trade date: | Jan. 4
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| Settlement date: | Jan. 9
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Fitch: BBB+
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| Distribution: | Rule 144A and Regulation S
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| 2029 tap
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| Amount: | $450 million
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| Issue: | Senior notes
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| Maturity: | Jan. 15, 2029
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| Coupon: | 6.05%
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| Total issue size: | $900 million
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| Notes due 2036
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| Amount: | $800 million
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| Issue: | Senior notes
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| Maturity: | Jan. 9, 2036
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| Coupon: | 5.38%
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| Spread: | Treasuries plus 125 bps
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| Price talk: | Treasuries plus 150 bps area
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