By Paul A. Harris
Portland, Ore., Feb. 20 – Dean Foods Co. priced a $700 million issue of eight-year senior notes (B2/B+/) at par to yield 6½% on Friday, according to a syndicate source.
The yield printed at the tight end of the 6½% to 6¾%, yield talk. That official talk, which came on top of early guidance, was announced earlier on Friday.
Morgan Stanley & Co. LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC, Credit Agricole CIB and SunTrust Robinson Humphrey Inc. were the joint bookrunners for the Rule 144A for life offering.
Approximately $521 million of the proceeds will be used to finance the redemption of all of the company’s outstanding notes due in 2016. Remaining proceeds will be used to repay a portion of its senior secured credit facility and receivables-backed facility.
Dean Foods is a Dallas-based food and beverage company.
| Issuer: | Dean Foods Co.
|
| Amount: | $700 million
|
| Maturity: | March 15, 2023
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC, Credit Agricole CIB, SunTrust Robinson Humphrey Inc.
|
| Co-managers: | Rabo Securities, PNC Capital Markets
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 456.8 bps
|
| First call: | March 15, 2018 at 104.875
|
| Trade date: | Feb. 20
|
| Settlement date: | Feb. 25
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6½% to 6¾%
|
| Marketing: | Roadshow
|
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