Alsea completes €300M 5-year high-yield debut; terms

Alsea on Jan. 13 completed its €300 million offering of five-year (non-call two-year) unsecured notes at par for a 5.5% yield, via global coordinators BofA Securities, ING (B&D), Santander and Société Générale, and joint passive bookrunners CaixaBank, Rabobank, Sabadell and Scotiabank.

Final guidance was given within a 0.125% range of 5.625%, down from guidance given earlier of 5.750% area and initial price thoughts at the London open in a high-5% context. Final books were sized at roughly €750 million, compared to more than €800 million at final guidance.

The deal was upsized from the €275 million initially targeted and will be issued through Alsea's 77%-owned Spanish subsidiary Food Service Project SA. Proceeds from the leverage-neutral transaction will be used to refinance bank debt, mostly targeting euro-denominated syndicated loans.

Ratings are B1 from Moody's and BB- by Fitch.

Mexico-headquartered Alsea operates across Latin America and Europe. It is active in the fast-food, coffee shop, casual, fast-casual and family dining sectors, and its brands include Starbucks, Domino's and Burger King.

Terms: