B&G Foods Prices Senior Notes - Analyst Blog
May 22 2013 - 1:10PM
Zacks
Packaged food company, B&G Foods, Inc.
(BGS) recently announced the pricing of senior notes worth $700
million due 2021. The notes carry an interest rate of 4.625%. The
offering process is expected to complete on Jun 4, 2013.
B&G intends to use the net proceeds to purchase senior notes
worth $248.5 million due 2018. The company may also redeem other
existing senior notes worth $222.2 million and revolving loans of
$40.0 million. The remaining net proceeds would be used to meet
other general corporate expenses, which may include repayment of
debt and acquisition of assets.
B&G Foods often acquires small brands that have strong
margins and generate less than $100 million in sales. Most of the
time, these are smaller brands from large food companies, which
have limited competition. B&G Foods’ investments in these
brands help to generate huge free cash flow and ensure
profitability in the long run.
Very recently, B&G acquired the TrueNorth brand from DeMet’s
Candy Company to strengthen its snack portfolio. TrueNorth are bite
sized nut clusters made of roasted nuts, with a taste of sea salt
and sweetness. B&G Foods’ snacks portfolio also includes
New York Style, Old London, JJ Flats and Devonsheer brands which
were acquired in Oct 2013.
B&G Foods carries a Zacks Rank #2 (Buy).
Some other consumer staple stocks that are worth a look include
Flower Foods Inc. (FLO) carrying a Zacks
Rank #1 (Strong Buy) and H. J. Heinz Company (HNZ)
and J&J Snack Foods Corp. (JJSF) holding a
Zacks Rank #2 (Buy).
B&G FOODS CL-A (BGS): Free Stock Analysis Report
FLOWERS FOODS (FLO): Free Stock Analysis Report
HEINZ (HJ) CO (HNZ): Free Stock Analysis Report
J&J SNACK FOODS (JJSF): Free Stock Analysis Report
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