New Issue: TreeHouse Foods sells $400 million eight-year notes at par to yield 7¾%

By Paul A. Harris

St. Louis, Feb. 19 - TreeHouse Foods, Inc. priced a $400 million issue of eight-year senior notes (Ba2/BB-/) at par to yield 7¾% on Friday, according to an informed source.

The yield printed at the tight end of the 7 7/8% area price talk.

Bank of America Merrill Lynch and Wells Fargo Securities were joint bookrunners.

Proceeds, along with expected new bank debt and a stock offering, will be used to fund a portion of the acquisition of Sturm Foods.

TreeHouse is a Westchester, Ill.-based private-label food company.

Issuer:	TreeHouse Foods, Inc.
Amount:	$400 million
Maturity:	March 1, 2018
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, Wells Fargo Securities
Senior co-managers:	BMO Nesbitt Burns, Rabobank, SunTrust Robinson Humphrey Inc.
Co-managers:	Barclays Capital Inc., KeyBanc Capital Markets Inc.
Coupon:	7¾%
Price:	Par
Yield:	7¾%
Spread:	427 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until March 1, 2014, then at 103.875, 101.938, declining to par on March 1, 2016
Equity clawback:	35% at 107.75 until March 1, 2013
Trade date:	Feb. 19
Settlement date:	March 2
Ratings:	Moody's: Ba2
	Standard & Poor's: BB-
Distribution:	SEC registered
Price talk:	7 7/8% area

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