By Cristal Cody
Eureka Springs, Ark., Sept. 23 – Flowers Foods, Inc. priced an upsized $400 million of 3.5% 10-year senior notes (Baa2/BBB/BBB) at 99.473 to yield 3.563% on Friday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes priced with a spread of 195 basis points over Treasuries, at the tightest side of guidance.
The deal was upsized from $300 million.
Deutsche Bank Securities Inc., Wells Fargo Securities LLC, RBC Capital Markets, LLC and SunTrust Robinson Humphrey, Inc. were the bookrunners.
Proceeds will be used to repay debt outstanding under the company’s existing term loan facilities, and any remaining proceeds will be used for general corporate purposes.
Flowers Foods is a Thomasville, Ga.-based bakery company.
| Issuer: | Flowers Foods, Inc.
|
| Amount: | $400 million
|
| Description: | Senior notes
|
| Maturity: | Oct. 1, 2026
|
| Bookrunners: | Deutsche Bank Securities Inc., Wells Fargo Securities LLC, RBC Capital Markets, LLC, SunTrust Robinson Humphrey, Inc.
|
| Coupon: | 3.5%
|
| Price: | 99.473
|
| Yield: | 3.563%
|
| Spread: | Treasuries plus 195 bps
|
| Call features: | Make-whole call before July 1, 2026 at Treasuries plus 30 bps; on or after July 1, 2026 at par
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 23
|
| Settlement date: | Sept. 28
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 200 bps area, plus or minus 5 bps
|
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