By Cristal Cody
Tupelo, Miss., Aug. 7 – Kraft Heinz Foods Co. priced $1.5 billion of floating-rate notes (Baa3/BBB-/) in three tranches on Monday, according to a market source.
The company sold $350 million of two-year floaters at Libor plus 42 basis points.
Kraft Heinz priced $650 million of short four-year floaters at Libor plus 57 bps.
The $500 million tranche of five-year floating-rate notes priced at Libor plus 82 bps.
The notes priced on the tightest side of guidance.
Barclays, J.P. Morgan Securities LLC, BofA Merrill Lynch, Goldman Sachs & Co., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners.
The notes are non-callable.
Proceeds will be used to repay debt under the company's term loan facility, to refinance some commercial paper borrowings and for other general corporate purposes.
Kraft Heinz is a Chicago-based food company.
| Issuer: | Kraft Heinz Foods Co.
|
| Amount: | $1.5 billion
|
| Description: | Floating-rate notes
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, BofA Merrill Lynch, Goldman Sachs & Co., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC
|
| Trade date: | Aug. 7
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Distribution: | SEC registered
|
|
|
| Two-year floaters
|
| Amount: | $350 million
|
| Maturity: | Aug. 9, 2019
|
| Coupon: | Libor plus 42 bps
|
| Call features: | Non-callable
|
| Price guidance: | Libor plus 45 bps area
|
|
|
| Four-year floaters
|
| Amount: | $650 million
|
| Maturity: | Feb. 10, 2021
|
| Coupon: | Libor plus 57 bps
|
| Call features: | Non-callable
|
| Price guidance: | Libor plus 60 bps area
|
|
|
| Five-year floaters
|
| Amount: | $500 million
|
| Maturity: | Aug. 10, 2022
|
| Coupon: | Libor plus 82 bps
|
| Call features: | Non-callable
|
| Price guidance: | Libor plus 85 bps area
|
|
|
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