Performance Food Group Prices $1.06 Billion Senior Notes Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Should l Buy PFGC?
Source: seekingalpha
- Offering Size: Performance Food Group Company announced that its wholly-owned subsidiary has priced a $1.06 billion offering of 5.625% senior notes due 2034, expected to close on February 19, which will enhance the company's financial flexibility going forward.
- Use of Proceeds: The proceeds from this offering will be combined with borrowings under its revolving credit facility primarily to redeem outstanding 5.500% senior notes due 2027 and to cover related fees, aiming to optimize the company's capital structure.
- Guarantee Structure: The newly issued notes will be guaranteed by Performance Food Group Company and certain of its wholly-owned domestic subsidiaries, which enhances investor confidence in the notes and reduces financing costs.
- Market Reaction: Following the announcement, Performance Food Group's stock rose 0.31% in after-hours trading to $92.1, indicating a positive market response to the company's financing plans.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PFGC?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on PFGC
Wall Street analysts forecast PFGC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PFGC is 119.13 USD with a low forecast of 105.00 USD and a high forecast of 130.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 94.400
Low
105.00
Averages
119.13
High
130.00
Current: 94.400
Low
105.00
Averages
119.13
High
130.00
About PFGC
Performance Food Group Company, through its subsidiaries, markets and distributes primarily national and Company-branded food and food-related products to customer locations across North America. The Company operates through three segments: Foodservice, Convenience, and Specialty. Its Foodservice segment distributes a line of national brands, customer brands, and its proprietary-branded food and food-related products to independent and multi-unit chain restaurants and other institutions. The Specialty segment specializes in distributing candy, snacks, beverages, and other items nationally to vending, office coffee service, theater, retail, hospitality, and other channels. The Convenience segment distributes candy, snacks, beverages, cigarettes, other tobacco products, food and foodservice related products, and other items to convenience stores across North America. It markets and distributes over 300,000 food and food-related products to customers across the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
PFG Plans to Offer $1.06 Billion Senior Notes
- Financing Plan: Performance Food Group Company intends to offer $1.06 billion in Senior Notes due 2034, aiming to optimize its capital structure and reduce financial costs, thereby enhancing the company's financial flexibility.
- Debt Replacement: The net proceeds from this offering will be used to redeem the outstanding 5.500% Senior Notes due 2027, which is expected to decrease future interest expenses and further improve the company's profitability and cash flow management.
- Market Positioning: As one of the largest food and foodservice distribution companies in North America with over 150 distribution centers, this financing is anticipated to support PFG's continued business expansion and market share growth in a highly competitive environment.
- Compliance Statement: The notes will be offered in accordance with securities laws, exclusively to qualified institutional buyers and non-U.S. persons, ensuring compliance and reducing legal risks, which will further strengthen investor confidence.
See More
Performance Food Group Prices $1.06 Billion Senior Notes Offering
- Offering Size: Performance Food Group Company announced the pricing of $1.06 billion in 5.625% Senior Notes due 2034, expected to close on February 19, 2026, which will provide crucial funding to optimize its capital structure.
- Use of Proceeds: PFG intends to use the net proceeds from this offering, along with borrowings from its revolving credit facility, to redeem all outstanding 5.500% Senior Notes due 2027, thereby reducing interest expenses and enhancing financial flexibility.
- Guarantee Structure: The notes will be guaranteed by PFGC, Inc. and its future wholly-owned subsidiaries, which bolsters investor confidence in the notes and may lower financing costs.
- Market Compliance: The notes are not registered under the Securities Act of 1933 and will be offered primarily to qualified institutional buyers and non-U.S. persons, ensuring compliance and broadening the potential investor base.
See More
Performance Food Group Prices $1.06 Billion Senior Notes Offering
- Offering Size: Performance Food Group Company announced that its wholly-owned subsidiary has priced a $1.06 billion offering of 5.625% senior notes due 2034, expected to close on February 19, which will enhance the company's financial flexibility going forward.
- Use of Proceeds: The proceeds from this offering will be combined with borrowings under its revolving credit facility primarily to redeem outstanding 5.500% senior notes due 2027 and to cover related fees, aiming to optimize the company's capital structure.
- Guarantee Structure: The newly issued notes will be guaranteed by Performance Food Group Company and certain of its wholly-owned domestic subsidiaries, which enhances investor confidence in the notes and reduces financing costs.
- Market Reaction: Following the announcement, Performance Food Group's stock rose 0.31% in after-hours trading to $92.1, indicating a positive market response to the company's financing plans.
See More
Performance Food Group Prices $1.06 Billion Senior Notes Offering
- Offering Size: Performance Food Group announced the pricing of $1.06 billion in 5.625% Senior Notes, expected to close on February 19, 2026, reflecting the company's strong capital market financing capabilities.
- Use of Proceeds: The net proceeds from this offering will be used alongside borrowings from its revolving credit facility to redeem the outstanding 5.500% Senior Notes due 2027, aimed at reducing financial costs and optimizing capital structure to enhance financial flexibility.
- Guarantee Structure: The new notes will be guaranteed by PFGC, Inc. and its future wholly-owned subsidiaries, which bolsters investor confidence and demonstrates the company's commitment to future financial stability.
- Compliance Statement: The notes are not registered under the Securities Act and are offered only to qualified institutional buyers and non-U.S. persons, indicating the company's cautious approach to legal compliance to mitigate potential legal risks.
See More
Performance Food Group Plans $1.06B Senior Notes Offering
- Financing Plan: Performance Food Group announced that its wholly owned subsidiary intends to offer $1.06 billion in senior notes due 2034, aiming to optimize its capital structure and reduce financing costs through this initiative.
- Debt Replacement: The net proceeds from this offering will be used, along with borrowings under its revolving credit facility, to redeem all outstanding 5.500% senior notes due 2027, thereby reducing future interest burdens and improving financial flexibility.
- Guarantee Arrangement: The new notes will be guaranteed by PFGC and its existing and future material wholly owned domestic restricted subsidiaries, enhancing investor confidence in the notes and mitigating risk.
- Market Reaction: Following the announcement, Performance Food Group's shares rose by 4.75%, reflecting the market's positive perception of the company's financing strategy and recognition of its future growth potential.
See More
PFGC Plans to Offer $1.06 Billion Senior Notes
- Financing Plan: Performance Food Group, Inc. announced its intention to offer $1.06 billion in senior notes due 2034, aiming to optimize its capital structure and reduce financing costs through this initiative.
- Debt Replacement: The net proceeds from this offering will be used, along with borrowings from its revolving credit facility, to redeem all outstanding 5.5% senior notes due 2027, which is expected to decrease future interest expenses and improve the company's financial health.
- Company Guarantee: The new notes will be guaranteed by the parent company, Performance Food Group Company, and each of its existing and future material subsidiaries, enhancing investor confidence in the notes and reducing risk.
- Stock Performance: On the day prior to the announcement, PFGC shares closed at $94.40 on the New York Stock Exchange, reflecting a 4.75% increase, indicating a positive market reaction to the company's financing plans.
See More
PFG Plans to Offer $1.06 Billion Senior Notes
- Financing Plan: Performance Food Group Company intends to offer $1.06 billion in Senior Notes due 2034, aiming to optimize its capital structure and reduce financial costs, thereby enhancing the company's financial flexibility.
- Debt Replacement: The net proceeds from this offering will be used to redeem the outstanding 5.500% Senior Notes due 2027, which is expected to decrease future interest expenses and further improve the company's profitability and cash flow management.
- Market Positioning: As one of the largest food and foodservice distribution companies in North America with over 150 distribution centers, this financing is anticipated to support PFG's continued business expansion and market share growth in a highly competitive environment.
- Compliance Statement: The notes will be offered in accordance with securities laws, exclusively to qualified institutional buyers and non-U.S. persons, ensuring compliance and reducing legal risks, which will further strengthen investor confidence.
See More
Performance Food Group Prices $1.06 Billion Senior Notes Offering
- Offering Size: Performance Food Group Company announced the pricing of $1.06 billion in 5.625% Senior Notes due 2034, expected to close on February 19, 2026, which will provide crucial funding to optimize its capital structure.
- Use of Proceeds: PFG intends to use the net proceeds from this offering, along with borrowings from its revolving credit facility, to redeem all outstanding 5.500% Senior Notes due 2027, thereby reducing interest expenses and enhancing financial flexibility.
- Guarantee Structure: The notes will be guaranteed by PFGC, Inc. and its future wholly-owned subsidiaries, which bolsters investor confidence in the notes and may lower financing costs.
- Market Compliance: The notes are not registered under the Securities Act of 1933 and will be offered primarily to qualified institutional buyers and non-U.S. persons, ensuring compliance and broadening the potential investor base.
See More
Performance Food Group Prices $1.06 Billion Senior Notes Offering
- Offering Size: Performance Food Group Company announced that its wholly-owned subsidiary has priced a $1.06 billion offering of 5.625% senior notes due 2034, expected to close on February 19, which will enhance the company's financial flexibility going forward.
- Use of Proceeds: The proceeds from this offering will be combined with borrowings under its revolving credit facility primarily to redeem outstanding 5.500% senior notes due 2027 and to cover related fees, aiming to optimize the company's capital structure.
- Guarantee Structure: The newly issued notes will be guaranteed by Performance Food Group Company and certain of its wholly-owned domestic subsidiaries, which enhances investor confidence in the notes and reduces financing costs.
- Market Reaction: Following the announcement, Performance Food Group's stock rose 0.31% in after-hours trading to $92.1, indicating a positive market response to the company's financing plans.
See More
Performance Food Group Prices $1.06 Billion Senior Notes Offering
- Offering Size: Performance Food Group announced the pricing of $1.06 billion in 5.625% Senior Notes, expected to close on February 19, 2026, reflecting the company's strong capital market financing capabilities.
- Use of Proceeds: The net proceeds from this offering will be used alongside borrowings from its revolving credit facility to redeem the outstanding 5.500% Senior Notes due 2027, aimed at reducing financial costs and optimizing capital structure to enhance financial flexibility.
- Guarantee Structure: The new notes will be guaranteed by PFGC, Inc. and its future wholly-owned subsidiaries, which bolsters investor confidence and demonstrates the company's commitment to future financial stability.
- Compliance Statement: The notes are not registered under the Securities Act and are offered only to qualified institutional buyers and non-U.S. persons, indicating the company's cautious approach to legal compliance to mitigate potential legal risks.
See More
Performance Food Group Plans $1.06B Senior Notes Offering
- Financing Plan: Performance Food Group announced that its wholly owned subsidiary intends to offer $1.06 billion in senior notes due 2034, aiming to optimize its capital structure and reduce financing costs through this initiative.
- Debt Replacement: The net proceeds from this offering will be used, along with borrowings under its revolving credit facility, to redeem all outstanding 5.500% senior notes due 2027, thereby reducing future interest burdens and improving financial flexibility.
- Guarantee Arrangement: The new notes will be guaranteed by PFGC and its existing and future material wholly owned domestic restricted subsidiaries, enhancing investor confidence in the notes and mitigating risk.
- Market Reaction: Following the announcement, Performance Food Group's shares rose by 4.75%, reflecting the market's positive perception of the company's financing strategy and recognition of its future growth potential.
See More
PFGC Plans to Offer $1.06 Billion Senior Notes
- Financing Plan: Performance Food Group, Inc. announced its intention to offer $1.06 billion in senior notes due 2034, aiming to optimize its capital structure and reduce financing costs through this initiative.
- Debt Replacement: The net proceeds from this offering will be used, along with borrowings from its revolving credit facility, to redeem all outstanding 5.5% senior notes due 2027, which is expected to decrease future interest expenses and improve the company's financial health.
- Company Guarantee: The new notes will be guaranteed by the parent company, Performance Food Group Company, and each of its existing and future material subsidiaries, enhancing investor confidence in the notes and reducing risk.
- Stock Performance: On the day prior to the announcement, PFGC shares closed at $94.40 on the New York Stock Exchange, reflecting a 4.75% increase, indicating a positive market reaction to the company's financing plans.
See More
