The company, founded in Sweden and once owned by Nestlé, was bought by private equity firm Lion Capital in 2008. It went through a financial restructuring, which finished in October 2012. The debt then included a £91.4m term loan 'A' due 2014, an £80.1m term loan 'B' due 2015 and a £193.5m term loan 'C' due 2016.
All the still outstanding debt will be refinanced with the proceeds of the bond, according to a banker close to the deal.
Since the restructuring, Findus has been owned by hedge fund Highbridge Capital, JP Morgan and Lion Capital.
JP Morgan (billing and delivering), Goldman Sachs, Nordea and Société Générale are joint bookrunners on the bond.
The leads had previously planned to launch the deal on Thursday, June 20, and had sent 'save the date' invitations out to investors. The company and banks then held off issuing, however, when markets became more volatile after comments by US Federal Reserve chairman Ben Bernanke the previous day.
Now, banks are planning to price the bond on Friday this week after a European roadshow.
The notes with expected B3/B-/B+ ratings will be issued through Findus Bondco SA. The company has 4.25 times Ebitda leverage, according to a banker close to the deal.
Fresh and prepared food producer Bakkavor is the best comparable in the bond market, he added. The company was hit by market volatility on June 6, the day it priced its B2/B- rated £150m senior secured notes. The seven year notes came with an 8.75% coupon to yield 9% — after initial guidance had been in the 8%-8.25% area.
