By Andrea Heisinger
New York, Jan. 5 - Kraft Foods Inc. sold $800 million of floating-rate notes due July 2013 on Thursday at par to yield Libor plus 87.5 basis points, an informed source said.
The notes (Baa2/BBB-/BBB-) have a change-of-control put at 101%.
There is a mandatory redemption at par plus accrued and unpaid interest at the public announcement of the record date for the proposed grocery spin-off to shareholders.
Citigroup Global Markets Inc. and RBS Securities Inc. were the active bookrunners. Passive bookrunners were Barclays Capital Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC.
Senior co-managers were Bank of America Merrill Lynch, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., SG Americas Securities LLC and UBS Securities LLC.
Co-managers were Mitsubishi UFJ Securities (USA) Inc., Mizuho Securities USA Inc., Scotia Capital (USA) Inc. and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes, including debt repayment.
Kraft last sold debt in a $9.5 billion offering in four tranches on Feb. 4, 2010.
The food company is based in Northfield, Ill.
| Issuer: | Kraft Foods Inc.
|
| Issue: | Floating-rate notes
|
| Amount: | $800 million
|
| Maturity: | July 10, 2013
|
| Bookrunners: | Citigroup Global Markets Inc., RBS Securities Inc. (active), Barclays Capital Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC (passive)
|
| Senior co-managers: | Bank of America Merrill Lynch, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., SG Americas Securities LLC, UBS Securities LLC
|
| Co-managers: | Mitsubishi UFJ Securities (USA) Inc., Mizuho Securities USA Inc., Scotia Capital (USA) Inc., Wells Fargo Securities LLC
|
| Coupon: | Libor plus 87.5 bps
|
| Price: | Par
|
| Yield: | Libor plus 87.5 bps
|
| Call: | Mandatory at announcement of grocery spin-off
|
| Change-of-control put: | 101%
|
| Distribution: | Off shelf
|
| Trade date: | Jan. 5
|
| Settlement date: | Jan. 10
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
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