Fleming Companies intends to offer for sale US$260m of senior subordinated notes due 2012 in a private placement.
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The net proceeds of the offering will be used to redeem Fleming’s currently outstanding US$250m 10.5% senior subordinated notes due 2004. The new ten-year notes, which will be guaranteed by Fleming’s current and future wholly-owned subsidiaries, could be priced for sale later today [Tuesday]. Fleming will issue a formal Notice of Redemption for the 2004 notes shortly.
“The combined benefits of low interest rates and strength in the capital markets provide Fleming an opportunity to, essentially, extend the maturity on this debt,” said Neal J. Rider, Fleming’s executive VP and CFO.
The new ten-year notes will be offered to qualified institutional buyers under Rule 144A and to persons outside the US under Regulations.
