US Foods Announces Launch of $500 Million Senior Notes Offering
ROSEMONT, IL - US Foods has announced the commencement of $500 million aggregate principal amount of senior notes by its direct and wholly-owned subsidiary, US Foods, Inc. This announcement comes on the heels of the company’s successful launch of its IPO, last month.
Together with proceeds from US Foods’ IPO borrowings, and under a new senior secured term loan B facility current with the notes’ issuance, the company said that it will use the funds for the following, according to a press release:
- Repay existing secured term loan B facility
- Redeem the outstanding 8.5% senior notes due 2019
- Repay CMBS fixed facility
- Pay related fees and expenses
- Remaining proceeds to be used for other corporate purposes
The company stated the notes will be guaranteed on a senior unsecured basis by the company’s wholly-owned domestic subsidiaries that guarantee its senior secured credit facilities. The notes may not be offered or sold in the U.S. without registration or applicable exemption from Securities Act registration requirements, and applicable state laws.
The notes will be offered to qualified institutional buyers in a private offering that is exempt from the registration requirements of the U.S. Securities Act of 1933, and also to non-U.S. persons outside the U.S. in reliance on Regulation S under the Securities Act.
The offering will be due 2024, but with no assurance that the proposed will be completed.
Stay with AndNowUKnow as we keep a close eye on industry financials and US Foods announcements, and the impact it has on the retail sector.
