General Mills tenders for up to $250 million of 6%, 5.65% notes

By Jennifer Chiou

New York, April 13 - General Mills, Inc. announced the start of a Dutch auction cash tender offer for up to $250 million total of its $1,240,292,000 of 6% notes due 2012 and $700 million of 5.65% notes due 2012.

The Golden Valley, Minn., consumer food company said it will calculate the payouts using the 1.375% Treasury due Feb. 15, 2012 for the 6% notes and 4.125% Treasury due Aug. 31, 2012 for the 5.65% notes plus an acceptable bid spread range of 30 basis points to 55 bps for both series.

The payout will include a $30.00 early participation amount for those who tender by midnight ET on April 26. Holders will also receive accrued interest.

The company added that the clearing spread premium for the tender offer will be the lowest single premium at which General Mills will be able to accept tendered notes in the total principal amount up to the tender cap with bid premiums equal to or less than the lowest single premium.

The reference yields will be set at 2 p.m. ET on May 6.

The offer will end at midnight ET on May 10.

General Mills said it expects to use a combination of cash on hand and the proceeds of an issue of commercial paper to fund the offer.

Bank of America Merrill Lynch (888 292-0700 or call collect 980 387-3907) and Goldman Sachs & Co. (800 828-3182 or call collect 212 902-5183) are the dealer managers. Global Bondholder Services Corp. is the information agent and depositary (212 430-3774 or 866 470-4200).

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