Bloomberg News

Iceland Foods Said to Give Price Guidance on LBO Loans

March 09, 2012

Iceland Foods Ltd. offered price guidance on its 885 million-pound ($1.4 billion) leveraged-loan financing for the company’s buyout by its chief executive officer, according to a person with knowledge of the matter.

Iceland Foods said today its management led by CEO Malcolm Walker completed the acquisition that values the Deeside, Wales- based supermarket chain at 1.45 billion pounds. The deal will also be financed by 250 million pounds of vendor loan notes, according to the statement.

Iceland Foods’ 300 million-pound term loan A and 25 million pounds of revolving credit in pounds are being marketed with interest of 500 basis points more than the London interbank offered rate, the person said. A 200 million-pound seven-year term loan B is being offered at a margin of 550 basis points.

The financing also includes a 360 million-pound term loan B in euros that will pay 525 basis points over Euribor, the person said. A basis point is 0.01 percentage point.

A lender meeting is scheduled for March 14 in London, the person said.

Credit Suisse Group AG, Deutsche Bank AG, HSBC Holdings Plc, Nomura Holdings Inc. and Royal Bank of Scotland Group Plc are arranging the senior loans. Rothschild advised the company’s management, Iceland Foods said.

To contact the reporter on this story: Patricia Kuo in London at pkuo2@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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