Allen & Overy has advised Iceland Foods on its £950m high-yield bond, the largest sterling denominated high-yield bond issuance of 2014.
The bonds consist of £350m senior secured floating rate notes due 2020, £400m 6.25 per cent senior secured notes due 2021 and £200m 6.75 per cent senior secured notes due 2024. All will be listed on the Euro MTF market of the Luxembourg stock exchange.
Iceland Foods is a UK-based specialist frozen food retailer with 833 stores in the UK and a presence in Spain, Portugal, Ireland and the Czech Republic. The corporation is owned by its management team and a consortium of Brait, Landmark and Lord Kirkam, which acquired the business from Icelandic banks Kaupthing and Glitnir in 2012 for £1.4bn, an acquisition on which Allen & Overy advised the consortium.
The proceeds of the high-yield bond will be used to refinance acquisition debt incurred in 2012 and to redeem vendor loan notes issued to Kaupthing and Glitnir as part of the transaction.
The Allen & Overy team was led by corporate partner George Knighton, high-yield partners Jeanette Cruz and Kevin Muzilla and banking partner Jonathan Brownson. They were supported by corporate senior associate William Samengo-Turner and associate Chloe Johnson; US law advice was provided by senior associate Paul Porter, associates Maylea Ma and Jiah Ham and summer associate Nick Fedewa.
Additional support was provided by banking senior associate Ian Roebuck and associates Katherine Abraham, James Green and Abira Gupta.