B&G Foods Prices Senior Notes - Analyst Blog


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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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BGS , FLO , HNZ , JJSF



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