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US Foods Announces Launch of $500 Million Senior Notes Offering

US Foods Announces Launch of $500 Million Senior Notes Offering


ROSEMONT, IL
Monday, June 13th, 2016

Following the successful launch of the company’s IPO last month, 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. 

According to a press release, 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.

The offering will be due 2024, but with no assurance that the proposed will be completed. The notes will also be offered to non-U.S. persons outside the U.S. in reliance on Regulation S under the Securities Act.

Together with borrowings under a new senior secured term loan B facility current with the notes’ issuance, and proceeds from US Foods’ IPO, the company said that it will use the funds for the following: 

  • 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.

Keep an eye on DeliMarket News as we keep our cursors hovered over US Foods financials, and what it means for the company’s retail growth.

US Foods