Findus Plans High-Yield Bonds to Repay Loans After Restructuring

Findus Group Ltd., the London-based frozen-food maker that restructured its debt last year, plans to sell 410 million pounds ($610 million) of bonds to repay its credit facilities.

The company, which produces Young’s Seafood brand, is raising senior secured bonds due 2018 denominated in British pounds, euros and Swedish kronor, according to an e-mailed statement. It will also obtain a 60 million-pound credit line.

Investors including previous owner Lion Capital LLP, Highbridge Capital Management LLC and JPMorgan Chase & Co. injected 220 million pounds into the company as part of a debt-for-equity swap that completed in October. Findus then became embroiled in the U.K.’s horse meat scandal after tests found high proportions of the meat in its beef lasagna products.

Meetings with investors will take place this week to market the notes, according to a person familiar with the offering, who asked not to be named because the information is private. The bonds may be rated B3 by Moody’s Investors Service, B- by Standard & Poor’s and B+ by Fitch Ratings.

Findus joins Irish phone company Eircom Group, German packaging products provider Kloeckner Pentaplast, and Scottish drilling group KCA Deutag seeking investors in the high-yield bond market this year after restructuring debt.

JPMorgan Chase & Co. (JPM), Goldman Sachs Group Inc., Nordea Bank AB, and Societe Generale SA are managing the bond sale, the person said.

To contact the reporter on this story: Patricia Kuo in London at pkuo2@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

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