KeHE Distributors Announces Private Offering of $200 Million of Senior Secured Second Lien Notes

NAPERVILLE, Ill., Sept. 9, 2019 /PRNewswire/ -- KeHE Distributors, LLC ("KeHE") announced today that it intends to commence an offering of $200 million aggregate principal amount of senior secured second lien notes due 2026 (the "Notes") in a private offering (the "Offering").

KeHE intends to use the net proceeds from the Offering to fund the redemption and discharge of all $200 million outstanding aggregate principal amount of its 7.625% Senior Secured Second Lien Notes due 2021.

The Notes will be guaranteed by certain of KeHE's subsidiaries and secured by a second‑priority lien on substantially all of KeHE's assets securing indebtedness under KeHE's asset-based revolving credit facility, subject to certain exceptions and permitted liens.

The Notes to be offered will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any other state securities laws. As a result, they may not be offered or sold in the United States or to any U.S. persons, except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Accordingly, the Notes will be offered only to "qualified institutional buyers" under Rule 144A of the Securities Act or, outside the United States, to persons other than "U.S. persons" in compliance with Regulation S under the Securities Act. A confidential offering memorandum for the Notes will be made available to such eligible persons. The Offering will be conducted in accordance with the terms and subject to the conditions set forth in such offering memorandum.

This news release is neither an offer to sell nor a solicitation of an offer to buy, nor shall there be any sale of, these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About KeHE

With its nationwide distribution network, KeHE provides natural, organic, specialty, ethnic & fresh products to chain and independent grocery and natural food stores and other specialty product retailers throughout North America.  KeHE is an employee-owned company with over 5,000 employee-owners in the U.S. and Canada. Where KeHE goes, goodness follows.® 

Forward-Looking Statements

This release contains "forward-looking statements" – that is, statements that relate to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "assume," "believe," "budget," "estimate," "forecast," "intend," "plan," "predict," "project," "seek," "see," "target," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include, but are not limited to, uncertainties about the timing or amount of the proposed Offering, whether the Offering will be completed, the expected purposes of the Offering and other factors, some of which are beyond our control.  The forward-looking statements in this press release are based on information available to KeHE as of the date hereof, and KeHE does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made except as otherwise required by law.

MEDIA CONTACT: Ari Goldsmith
Executive Director of Marketing, KeHE
[email protected]

SOURCE KeHE

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