New Issue: Kraft Heinz Foods details $3 billion of senior notes in three tranches

By Devika Patel

Knoxville, Tenn., June 5 – Kraft Heinz Foods Co. offered further details about a $3 billion sale of guaranteed senior notes (Baa3/BBB/BBB-) that priced in three tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.

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. These notes priced at 99.924 to yield 3.402%.

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. These notes priced at 99.803 to yield 4.044%.

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. These notes priced at 99.411 to yield 4.695%.

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
Senior co-managers:	BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., MUFG, RBC Capital Markets Corp., Santander Investment Securities Inc. and SMBC Nikko Securities America, Inc.
Co-managers:	Rabo Securities USA, Inc. and Standard Chartered Bank
Trade date:	June 4
Settlement date:	June 15
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%
Price:	99.924
Yield:	3.402%
Spread:	Treasuries plus 75 bps
Call:	Make-whole call at Treasuries plus 15 bps
Price guidance:	Treasuries plus 80 bps area, plus or minus 5 bps
Five-year notes
Amount:	$1.6 billion
Maturity:	June 15, 2023
Coupon:	4%
Price:	99.803
Yield:	4.044%
Spread:	Treasuries plus 125 bps
Call:	Make-whole call at Treasuries plus 20 bps until May 15, 2023, then a par call
Price guidance:	Treasuries plus 125 bps area, plus or minus 5 bps
10-year notes
Amount:	$1.1 billion
Maturity:	Jan. 30, 2029
Coupon:	4.625%
Price:	99.411
Yield:	4.695%
Spread:	Treasuries plus 175 bps
Call:	Make-whole call at Treasuries plus 30 bps until Oct. 30, 2028, then a par call
Price guidance:	Treasuries plus 175 bps area, plus or minus 5 bps

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.