By Andrea Heisinger
New York, March 29 - Flowers Foods, Inc. sold $400 million of 4.375% 10-year senior notes on Thursday at a spread of Treasuries plus 225 basis points, a market source away from the trade said.
This was the company's first bond deal, an informed source said.
The notes (Baa2/BBB-/) were sold at 99.76 to yield 4.405%.
The paper has a make-whole call at 35 bps over Treasuries and features a change-of-control put at 101%.
Bookrunners were Bank of America Merrill Lynch and Deutsche Bank Securities Inc.
Proceeds will be used to repay long-term debt under a revolving credit facility, along with future acquisitions, general corporate purposes and working capital.
Flowers provides direct store and warehouse delivery of food and baked goods and is based in Thomasville, Ga.
| Issuer: | Flowers Foods, Inc.
|
| Issue: | Senior notes
|
| Amount: | $400 million
|
| Maturity: | April 1, 2022
|
| Bookrunners: | Bank of America Merrill Lynch, Deutsche Bank Securities Inc.
|
| Coupon: | 4.375%
|
| Price: | 99.76
|
| Yield: | 4.405%
|
| Spread: | Treasuries plus 225 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Change-of-control put: | 101%
|
| Trade date: | March 29
|
| Settlement date: | April 3
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
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