Bonds
Snack Maker Offers Juicy 10% Yield to Fund Private Equity Payout
- Shearer’s looking to tap junk-bond market for $400 million
- Dividend recap deal is first CCC rated offering since July
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The snack maker behind some of Walmart Inc. and Frito-Lay’s most popular treats is offering bond investors double-digit yields to finance a $400 million payout to its private equity owner.
Shearer’s Foods is floating a rate of around 10% on the eight-year sale, which will back a distribution to Clayton Dubilier & Rice, according to people familiar with the matter. Deutsche Bank AG is leading the transaction, which is expected to price Sept. 10, the people said.