March 22 (IFR) - Ketchup giant H.J. Heinz increased the size
of its high-yield bond sale and tightened price guidance Friday,
indicating strong demand for the deal to help fund its $28
billion acquisition by Warren Buffett's Berkshire Hathaway and
The company is now planning to issue $3.1 billion of
second-lien notes, up from $2.1 billion. The bonds were
originally intended to refinance a second-lien bridge loan.
Price talk on the notes has been revised to 4.25% from 4.50%
area on Thursday and original thoughts of 5.75%.
Investors said the B1/BB- rated bond issue, which will price
later on Friday, has been a blowout, with reports late Thursday
that the order book was above $10 billion.
Wells Fargo, JP Morgan, Barclays and Citigroup are joint
books on the deal.
Berkshire and Brazilian private equity firm 3G are
buying Heinz for $72.50 a share, using a combination of loans,
equity and bonds to finance the acquisition.