Kraft Heinz begins tender offer for 5.375% senior notes due 2020

By Marisa Wong

Los Angeles, Sept. 3 – Kraft Heinz Co. announced that its 100% owned subsidiary Kraft Heinz Foods Co. has begun an offer to purchase for cash any and all of its $900 million outstanding 5.375% senior notes due 2020.

The tender offer will expire at 5 p.m. ET on Sept. 9.

The company is offering for each $1,000 principal amount of notes tendered and accepted for purchase a tender offer consideration based on a fixed spread of 30 basis points plus the yield based on the bid-side price of the 2% U.S. Treasury due Jan. 31, 2020 calculated at 2 p.m. ET on Sept. 9.

Holders will also receive accrued interest from Aug. 10 up to but excluding the settlement date, which is expected to be Sept. 10.

Tenders may be withdrawn at any time prior to the earlier of the expiration time or, if the offer is extended, the 10th business day after the start of the offer. Notes may also be withdrawn at any time after the 60th business day after the start of the offer if for any reason the tender offer has not been consummated by that date.

BofA Securities (980 387-3907 or 888 292-0070), Citigroup (800 558-3745 or 212 723-6106), Goldman Sachs & Co. LLC (800 828-3182 or 212 357-0215) and JPMorgan (866 834-4666 or 212 834-8553) are dealer managers for the tender offer.

Global Bondholders Services Corp. (866 794-2200 or 212 430-3774 for banks and brokers) is the tender agent and information agent.

Kraft Heinz also announced on Tuesday that it issued notices of redemption for all of 100% owned subsidiary Kraft Heinz Canada ULC’s C$300 million outstanding 2.7% senior notes due 2020 and $800 million of Kraft Heinz Foods’ $1.5 billion outstanding 2.8% senior notes due 2020. The redemption date will be Oct. 3.

As previously disclosed, on Aug. 9 Kraft Heinz repaid $350 million of its variable-rate senior notes due 2019, the company noted.

Kraft Heinz is a Chicago-based food company.

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