By Paul A. Harris
Portland, Ore., July 26 – British frozen food retailer Iceland priced £475 million equivalent of Iceland BondCo plc senior secured notes due Dec. 15, 2027 (B3/B/B+) in a two-part dual-currency transaction on Wednesday, according to a market source.
The deal included a £265 million tranche of 10 7/8% fixed-rate notes that priced at 99.204 to yield 11 1/8%. The yield printed 12.8 basis points inside of the 11¼% to 11½% yield talk. Initial guidance was in the mid-to-high 11% area.
The offering also featured €250 million of Euribor plus 550 bps floating-rate notes that priced at 97, on top of both spread talk and price talk; initial price guidance was 96 to 97.
Physical bookrunner HSBC will bill and deliver and will provide logistical services for the notes sale. JPMorgan is also a bookrunner.
Proceeds plus £25 million of cash on hand will be used to repay £500 million of the company’s outstanding senior secured notes due 2025, including accrued and unpaid interest.
Iceland, a multi-channel food retailer specializing in frozen food, maintains headquarters in Deeside, U.K.
| Issuer: | Iceland BondCo plc
|
| Amount: | £475 million equivalent
|
| Issue: | Senior secured notes
|
| Maturity: | Dec. 15, 2027
|
| Bookrunners: | HSBC (bill and deliver, logistical services) and JPMorgan
|
| Trade date: | July 26
|
| Settlement date: | Aug. 9
|
| Ratings: | Moody’s: B3
|
| S&P: B
|
| Fitch: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
|
|
| Fixed-rate notes
|
| Amount: | £265 million
|
| Coupon: | 10 7/8%
|
| Price: | 99.204
|
| Yield: | 11 1/8%
|
| Spread: | 648 bps
|
| First call: | Aug. 15, 2024 at 105.438
|
| Price talk: | 11¼% to 11½%
|
|
|
| Floating-rate notes
|
| Amount: | €250 million
|
| Coupon: | Euribor plus 550 bps
|
| Price: | 97
|
| First call: | Aug. 15, 2024 at 101
|
| Price talk: | Euribor plus 550 bps at 97
|
|
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