J.M. Smucker taps corporate bond market to fund cash portion of Hostess Brands deal

1 min read

J.M. Smucker Co. is tapping the investment-grade corporate bond market on Wednesday with a deal to finance its acquisition of Twinkies and HoHos maker Hostess Brands Inc.

The parent to food brands including Folgers, Smuckers and Meow Mix
SJM,
-2.79%
announced the $5.6 billion cash-and-stock deal in September.

The company is planning a four-tranche deal, according to a regulatory filing, comprised of five-year, 10-year, 20-year and 30-year fixed rate notes, according to market sources. Smucker is rated Baa3 by Moody’s and BBB by S&P Global Ratings.

Proceeds of the deal will be used to fund the cash consideration of the deal, to repay debt of Hostess Brands
TWNK,
-0.54%
and its units and to pay fees relating to the deal.

The company will pay Hostess shareholders $30.00 in cash and 0.03002 J.M. Smucker shares for each Hostess share they own. That valued Hostess shares at $34.25 each, or a 21.8% premium over the prior session’s closing price when the deal was announced.

As the following charts from data solutions company BondCliQ Media Services show, Smucker’s bonds have been popular in the last 10 days with better net buying across all maturities.

The next chart shows the company’s maturity stack with $1 billion of bonds coming due in 2025.

Spreads on the company’s existing bonds are holding steady to a few basis points wider on Wednesday. The company’s 4.25% notes that mature in 2035 widened by about 20 basis points when the deal was first announced on Sept. 11.

The stock, meanwhile, was down 1.3% Wednesday, and has fallen 28% in the year to date, while the S&P 500
SPX
has gained 13.6%.

Read the full article here

Leave a Reply

Your email address will not be published.

Previous Story

Tech stocks like Amazon and CrowdStrike will rip higher this earnings season, says Wedbush’s Ives. Here’s why.

Next Story

Fed’s Collins says rise in bond yields could reduce the need for further interest-rate hikes

Latest from Investment

مشاهير العرب سكس arabpornsamples.com زبر نايم
قصص ن realarabporn.com انجلا وايت
little pussy analpornstars.info chut land ki film
old movies telugu fuckmetube.mobi sapna rathi sex
pandaniku youhentai.org cbt hentai
xx com indian indianpornfeed.com bf vs gf
bf sex sex sex hqtube.mobi husband wife sexy video
desi sex video tumblr sexozavr.com animal fuck women
marathi blue film com xxx-tube-list.info xixxx video
bed room xnxx prontv.mobi real chut image
ytmp4 eroanal.net bhojpuri sexy
fpo xxx indiandesiclips.com nepal call girl
xvideo wwe gotporn.mobi www.indianxnxx
sex videos sunny leone erofreeporn.net hot malayalam actress navel pictures
presyo ng mga bilihin onlineteleserye.com love revolution season 2