By Cristal Cody
Tupelo, Miss., June 4 – Kraft Heinz Foods Co. priced $3 billion of guaranteed senior notes (Baa3/BBB/BBB-) in three tranches on Monday, according to a market source.
The company sold $300 million of 3.375% three-year notes at a spread of 75 basis points over Treasuries, on the tight side of guidance in the Treasuries plus 80 bps area, plus or minus 5 bps.
Kraft Heinz priced $1.6 billion of 4% five-year notes with a Treasuries plus 125 bps spread. The notes were talked to come with a spread in the Treasuries plus 125 bps area, plus or minus 5 bps.
The $1.1 billion tranche of long 4.625% 10-year notes priced at a 175 bps over Treasuries spread. Guidance on the notes was in the Treasuries plus 175 bps area, plus or minus 5 bps.
Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners.
The notes are guaranteed by Kraft Heinz Co.
Proceeds will be used to repay $1.5 billion of notes due July 2, 2018, $1,035,000,000 of notes due Aug. 23, 2018 and C$200 million of notes due July 6, 2018, to repay amounts outstanding in connection with the wind-down of the company's U.S. securitization program, to refinance a portion of its commercial paper and for other general corporate purposes.
Kraft Heinz is a Chicago-based food company.
| Issuer: | Kraft Heinz Foods Co.
|
| Guarantor: | Kraft Heinz Co.
|
| Amount: | $3 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC
|
| Trade date: | June 4
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $300 million
|
| Maturity: | June 15, 2021
|
| Coupon: | 3.375%
|
| Spread: | Treasuries plus 75 bps
|
| Price guidance: | Treasuries plus 80 bps area, plus or minus 5 bps
|
|
|
| Five-year notes
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| Amount: | $1.6 billion
|
| Maturity: | June 15, 2023
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| Coupon: | 4%
|
| Spread: | Treasuries plus 125 bps
|
| Price guidance: | Treasuries plus 125 bps area, plus or minus 5 bps
|
|
|
| 10-year notes
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| Amount: | $1.1 billion
|
| Maturity: | Jan. 30, 2029
|
| Coupon: | 4.625%
|
| Spread: | Treasuries plus 175 bps
|
| Price guidance: | Treasuries plus 175 bps area, plus or minus 5 bps
|
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