Freshpet Raises $340M Via Debt Offering

  • Freshpet Inc FRPT has priced its offering of $350 million aggregate principal amount of 3.00% convertible senior notes due 2028.
  • The issuance and sale of the notes are scheduled to settle on March 20, 2023.
  • Freshpet also granted the initial purchasers of the notes an option to purchase, for settlement within a period of 13 days from the date of issue, up to an additional $52.5 million principal amount of notes.
  • The notes will be senior, unsecured obligations of Freshpet and will accrue interest at 3.00% per annum, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2023. 
  • Freshpet estimates that the net proceeds from the offering will be approximately $340.3 million, or $391.4 million if the initial purchasers fully exercise their option to purchase additional notes.
  • Freshpet intends to use approximately $57.6 million of the net proceeds to fund the cost of entering into the capped call transactions and the remainder for general corporate purposes.
  • Price Action: FRPT shares closed lower by 1.83% at $54.65 on Wednesday.

Posted In: NewsOfferingsGeneralBriefs