PARSIPPANY, N.J. - B&G Foods, Inc. (NYSE: BGS), a manufacturer and distributor of branded food products, announced its intention to offer an additional $100 million of 8.000% senior secured notes due 2028. This offering, subject to market and other conditions, will be an addition to the previously issued senior secured notes under the same terms.
The additional senior secured notes will be guaranteed by certain domestic subsidiaries of B&G Foods, which also back the company’s existing senior secured and unsecured notes. The collateral for these notes includes most of B&G Foods' and the guarantors’ property interests, excluding real property and certain intangible assets, which also secure the company's existing senior secured credit agreement and current senior secured notes on an equal basis.
B&G Foods aims to use the proceeds from this offering to repay a portion of its revolving credit loans under its senior secured credit agreement, as well as to cover related fees and expenses. However, the company has indicated that there is no guarantee that the offering will be completed as planned or at all.
The notes and their guarantees will be offered to qualified institutional buyers in accordance with Rule 144A and to certain non-U.S. persons in offshore transactions under Regulation S of the Securities Act. These notes and guarantees have not been registered under the Securities Act or any state securities laws, and unless they are registered or exempted, they may not be offered or sold within the United States.
This press release is intended for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy the new senior secured notes and related guarantees.
B&G Foods, headquartered in New Jersey, boasts a portfolio of over 50 well-known brands, including Green Giant, Cream of Wheat, and Ortega. The company serves markets in the United States, Canada, and Puerto Rico.
In other recent news, B&G Foods, Inc. has been undergoing significant strategic shifts, including contemplating the divestiture of its Frozen & Vegetables segment in response to declining sales and shrinking margins. The potential sale is expected to improve the company's net debt to EBITDA ratio, as noted by several Wall Street analysts. B&G Foods' financial projections suggest modest revenue growth, with FY24E revenue estimated at $1,956.6 million and FY25E revenue at $1,965.5 million. The EPS forecasts for FY24 and FY25 are $0.80 and $0.87, respectively.
B&G Foods' stock received an upgrade from Piper Sandler to Neutral, followed by Barclays Capital maintaining an Equal Weight rating, and RBC Capital Markets setting a Sector Perform rating. These recent developments have come amidst the company's Q1 2024 financial results, which revealed a slight miss in net sales and a decrease in adjusted EBITDA, leading to a revised guidance for fiscal 2024.
InvestingPro Insights
In a strategic move to manage its debt, B&G Foods, Inc. (NYSE: BGS) has announced the offering of additional senior secured notes. As investors consider the implications of this development, key metrics and insights from InvestingPro provide a clearer picture of the company's financial health and market position.
With a market capitalization of $634.78 million, B&G Foods is navigating a challenging phase, as reflected by its adjusted price-to-earnings (P/E) ratio for the last twelve months as of Q1 2024, standing at 9.53. This valuation metric suggests that investors are cautiously optimistic about the company's earnings potential. Moreover, the company's dividend yield as of a recent date in 2024 is an attractive 9.46%, which is significant for income-focused investors, especially considering that B&G Foods has maintained dividend payments for 18 consecutive years. This commitment to returning value to shareholders remains a cornerstone of the company's financial strategy.
InvestingPro Tips point to a mixed outlook for B&G Foods. On one hand, net income is expected to grow this year, and the company's valuation implies a strong free cash flow yield. On the other hand, the stock's recent performance has been lackluster, with a one-month price total return of -15.21% and a three-month price total return of -27.72%. Additionally, the Relative Strength Index (RSI) suggests the stock is currently in oversold territory, which may interest value investors looking for potential entry points.
Investors considering B&G Foods as part of their portfolio can find additional insights on the company's prospects by visiting https://www.investing.com/pro/BGS. There are 11 additional InvestingPro Tips available, offering deeper analysis that could prove invaluable in making informed investment decisions. For those looking to access these exclusive insights, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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