Manitowoc Foodservice talks $425 million eight-year notes to yield 9½%-9¾%; pricing Friday

By Paul A. Harris

Portland, Ore., Feb. 4 – Manitowoc Foodservice, Inc. talked its $425 million offering of eight-year senior notes (Caa1/B) to yield 9½% to 9¾%, according to a syndicate source.

Books close at 10:30 a.m. ET on Friday, and the deal is set to price later on Friday.

Goldman Sachs & Co. is the left bookrunner for the Rule 144A with registration rights and Regulation S offering. J.P. Morgan Securities LLC, HSBC Bank and Citigroup Global Markets Inc. are the joint bookrunners.

Rabo Securities and BMO Securities are the co-managers.

The notes come with three years of call protection.

The issuing entity will be Manitowoc Foodservice Escrow Corp., which is to be merged with and into Manitowoc Foodservice.

Proceeds, together with proceeds from a concurrent term loan B, will be used to pay a $1,388,000,000 cash dividend to Manitowoc ParentCo in connection with spinoff of the New Port Richey, Fla.-based commercial foodservice equipment company, and for general corporate purposes.

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