Published on 8/25/2020 in the Prospect News High Yield Daily.
New Issue: TreeHouse Foods sells upsized $500 million 4% eight-year notes at par
By Paul A. Harris
Portland, Ore., Aug. 25 – TreeHouse Foods, Inc. priced an upsized $500 million issue of eight-year senior notes (B2/BB-) at par to yield 4% in a Tuesday drive-by, according to market sources.
The issue size increased from $400 million.
The yield printed at the tight end of the 4% to 4¼% yield talk. Initial guidance was 4½% to 4¾%.
The deal was heard to be playing to $3 billion of orders just before the close of books, according to a trader, who added that there was $100 million of reverse inquiry at play in the deal.
J.P. Morgan Securities LLC, BofA Securities Inc., Wells Fargo Securities LLC and BMO Capital Markets Corp. were joint bookrunners for the public offering.
The Oak Brook, Ill.-based manufacturer and distributor of private label packaged foods and beverages plans to use the proceeds to fund the redemption of all $375.9 million of its outstanding 4 7/8% senior notes due 2022 at par plus accrued and unpaid interest, with any remaining proceeds to be used for general corporate purposes.
| Issuer: | TreeHouse Foods, Inc.
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| Amount: | $500 million, increased from $400 million
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| Tenor: | Sept. 1, 2028
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| Securities: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Wells Fargo Securities LLC and BMO Capital Markets Corp.
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| Co-managers: | Barclays, Capital One Securities, Inc., MUFG, PNC Capital Markets LLC, Rabo Securities USA, Inc., TD Securities (USA) LLC and Truist Securities, Inc.
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| Coupon: | 4%
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| Price: | Par
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| Yield: | 4%
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| Call protection: | Make-whole at Treasuries plus 50 bps until Sept. 1, 2023, then callable at 102, 101 and par
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| Equity clawback: | For up to 40% at 104 prior to Sept. 1, 2023
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| Change-of-control put: | At 101
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| Trade date: | Aug. 25
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| Settlement date: | Sept. 9
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| Ratings: | Moody's: B2
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| S&P: BB-
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| Distribution: | SEC registered
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| Price talk: | 4% to 4¼%
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