B&G Foods Announces Pricing and Upsizing of Tack-On Offering of Senior Secured Notes
June 27, 2024 at 11:11 pm EDT
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B&G Foods, Inc. announced the pricing of an offering of an additional $250.0 million aggregate principal amount of 8.000% senior secured notes due 2028 in a transaction exempt from registration under the Securities Act of 1933, as amended. The new senior secured notes are being issued at a price of 100.5% plus accrued and unpaid interest from March 15, 2024 to, but excluding, the closing date. The offering, which has been upsized from the previously announced aggregate principal amount of $100.0 million, is expected to close on July 12, 2024, subject to customary closing conditions.
In connection with the upsizing of the offering, B&G Foods expects to reduce the size of its previously announced proposed amended tranche B term loans under its senior secured credit agreement from $600.0 million to $450.0 million aggregate principal amount. The new senior secured notes will constitute an additional issuance of senior secured notes under the indenture, dated as of September 26, 2023, governing the previously issued 8.000% senior secured notes due 2028. The new senior secured notes will be guaranteed on a senior secured basis by certain domestic subsidiaries of B&G Foods (that guarantee B&G Foods?
existing senior secured credit agreement, existing senior secured notes and existing senior unsecured notes). The new senior secured notes will be secured by a first-priority security interest in certain collateral, which generally includes most of B&G Foods? and the guarantors?
right or interest in or to property of any kind, except for real property and certain intangible assets, and which collateral also secures B&G Foods? existing senior secured credit agreement and existing senior secured notes on a pari passu basis. B&G Foods estimates that the net proceeds from the offering will be approximately $247.3 million after deducting fees and expenses related to the offering.
B&G Foods intends to use the proceeds of the offering to repay a portion of B&G Foods? revolving credit loans and tranche B term loans under its senior secured credit agreement and pay related fees and expenses.
B&G Foods, Inc. manufactures, sells and distributes branded shelf-stable and frozen foods across the United States, Canada and Puerto Rico. Its products include frozen and canned vegetables, vegetable, canola and other cooking oils, vegetable shortening, cooking sprays, oatmeal and other hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegar, and other specialty products. It operates in four segments: Specialty, Meals, Frozen & Vegetables and Spices & Flavor Solutions. Its products are marketed under various brands, including Ac'cent, B&G, B&M, Baker's Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary's, Clabber Girl, Cream of Rice, Cream of Wheat, Crisco, Dash, Davis, Devonsheer, Don Pepino, Durkee, Grandma's Molasses, Green Giant, Joan of Arc, Las Palmas, Le Sueur, MacDonald's, Mama Mary's, Maple Grove Farms of Vermont, McCann's, Molly McButter, New York Flatbreads, New York Style, Old London, Polaner, and Wright's.
B&G FOODS, INC. 