Processed food retailer
TreeHouse Foods Inc.
) has closed the previously-announced offering of unsecured
8-year senior notes. The offering comprised $400 million
principal amount of 4.87% Senior Notes due 2022.
Net proceeds from the notes will be utilized to fund its
revolving credit facility and repurchase the outstanding 7.750%
Senior Notes due 2018. TreeHouse is committed to maintain its
financial discipline and solid operational performance by
generating enough funds, allowing it to service its debt
TreeHouse also announced that it had received consents from
the 74.6% of its holders of its outstanding 7.750% Senior Notes
worth $298 million due 2018 to proposed amendments regarding the
BofA Merrill Lynch, J.P. Morgan Securities LLC of J.P Morgan
Chase & Co., Wells Fargo Securities, LLC of Wells Fargo &
Company, BMO Capital Markets Corp. and SunTrust Robinson
Humphrey, Inc. of SunTrust Bank Inc. acted as joint book-running
managers for the offering.
Last month, TreeHouse reported fourth-quarter and full-year
2013 results. The company logged net earnings of 98 cents per
share, beating the Zacks Consensus Estimate of 91 cents by 7.7%.
Adjusted earnings per share also surpassed the year-ago earnings
of 86 cents by 14.0% backed by higher revenues in all the
Total revenue increased 11.4% year over year to $660.3 million
owing to acquisitions (Cains Foods and the aseptic cheese and
pudding business from Associated Milk Producers Inc.) as well as
higher volume and favorable mix. Revenues also beat the Zacks
Consensus Estimate of $654.0 million by 1%.
TreeHouse presently carries a Zacks Rank #3 (Hold). Some
better ranked stocks in the food sector worth considering are
Diamond Foods Inc.
The Hain Celestial Group Inc.
Post Holdings Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
DIAMOND FOODS (DMND): Free Stock Analysis
HAIN CELESTIAL (HAIN): Free Stock Analysis
POST HOLDINGS (POST): Free Stock Analysis
TREEHOUSE FOODS (THS): Free Stock Analysis
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