Published on 1/31/2024 in the Prospect News High Yield Daily.
New Issue: Fiesta Purchaser/Shearer’s Foods prices $500 million 7 7/8% seven-year notes at par
By Paul A. Harris
Portland, Ore., Jan. 31 – Fiesta Purchaser, Inc. priced a $500 million issue of seven-year senior secured notes (expected ratings B3/B) at par to yield 7 7/8% on Wednesday, according to market sources.
The yield printed 12.5 basis points inside of yield talk in the 8 1/8% area. Early guidance was in the 8½% area.
The deal came in support of the buyout of Shearer’s Foods.
Bookrunners were UBS Securities LLC (bill and deliver), Deutsche Bank Securities Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., RBC Capital Markets LLC, TD Securities (USA) LLC and Goldman Sachs & Co. LLC.
Proceeds will be used to support the buyout of Chip Intermediate Holding Co., LLC (Shearer’s Foods) by Clayton Dubilier & Rice, LLC from Ontario Teachers' Pension Plan Board and to repay Shearer’s debt.
Shearer’s is an Ohio-based supplier to the snack industry.
| Issuer: | Fiesta Purchaser, Inc.
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| Amount: | $500 million
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| Issue: | Senior secured notes
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| Maturity: | March 1, 2031
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| Bookrunners: | UBS Securities LLC (bill and deliver), Deutsche Bank Securities Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., RBC Capital Markets LLC, TD Securities (USA) LLC and Goldman Sachs & Co. LLC
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| Co-managers: | Citizens Capital Markets Inc., Macquarie Capital (USA) Inc., Mizuho Securities USA Inc., Natixis Securities Americas LLC, Rabo Securities USA Inc. and Stifel Nicolaus & Co. Inc.
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| Coupon: | 7 7/8%
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| Price: | Par
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| Yield: | 7 7/8%
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| First call: | March 1, 2027 at 103.938
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| Trade date: | Jan. 31
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| Settlement date: | Feb. 12
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| Expected ratings: | Moody’s: B3
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| S&P: B
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 8 1/8% area
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| Marketing: | Roadshow
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