Terra Firm to fund Annington acquisition with PIK -sources

Mon Nov 19, 2012 11:10am EST

LONDON, Nov 19 (IFR) - Private equity firm Terra Firma plans to take full control of Annington Group by funding the remaining stake it does not own with a GBP500m Payment-In-Kind (PIK) bond, market sources said on Monday.

Marketing for the 10-year PIK, callable after five years, will begin on Tuesday via sole bookrunner Barclays. The bond, to be issued out of Annington Finance, is expected to be rated Caa1/CCC+.