25 Jan, 2021

US Foods prints upsized bonds at par to yield 4.75%; terms

US Foods Inc. has priced $900 million of eight-year unsecured bonds at the tight end of talk, sources said. Citi acted as lead bookrunner for the deal, which was finalized with a $300 million upsize.

The deal was initially proposed to repay the company's $600 million of 5.875% unsecured notes due 2024 that are callable at 101.47. Using proceeds stemming from the upsize, the company will now repay its term loan B due 2025, sources said.

US Foods, headquartered in Rosemont, Ill., is a food service distributor partnering with approximately 300,000 restaurants and foodservice operators. Terms:

Issuer US Foods Inc.
Ratings B+/Caa1
Amount $900 million
Issue Senior notes (144A/Reg S)
Coupon 4.75%
Price 100
Yield 4.75%
Spread T+403
Maturity Feb. 15, 2029
Call Non-call three (first call at par plus 50% coupon)
Trade (date) Jan. 25, 2021
Settle Feb. 4, 2021 (T+8)
Joint bookrunners C (lead)/KKR/BofA/WF
Px Talk 4.75%-5%
Notes Upsized from $600 million; change of control put at 101;
make-whole at T+50; up to 40% equity claw at 104.75%
until Feb. 15, 2024.