PARSIPPANY, N.J. - B&G Foods, Inc. (NYSE: BGS) has announced its decision to redeem all outstanding 5.25% senior notes due 2025, amounting to $265,392,000 in principal. The redemption is scheduled for October 9, 2024, and will be financed through the company's existing credit facilities and available cash reserves.
The redemption price has been set at 100.0% of the principal amount, plus any accrued and unpaid interest up to but not including the redemption date. According to the company's statement, after October 9, 2024, the notes will no longer accrue interest, and the rights of the note holders will be limited to receiving the redemption payment.
The Bank of New York Mellon (NYSE:BK) Trust Company, N.A., the trustee for the notes, will be issuing the notice of redemption to the registered holders. The Bank of New York Mellon Trust Company is available to provide additional information on the redemption process to note holders upon request.
B&G Foods, headquartered in Parsippany, New Jersey, is known for its portfolio of over 50 brands, which includes names like Green Giant, Cream of Wheat, and Ortega. The company specializes in the manufacture, sale, and distribution of branded shelf-stable and frozen foods primarily in North America.
This financial move comes amidst a broader context of B&G Foods' strategic financial management, as outlined in their forward-looking statements. The company has highlighted its substantial leverage and the impact of various factors such as commodity costs, consumer preferences, and market conditions on its operations. B&G Foods has also emphasized its focus on brand equity, new consumer trends, and productivity improvements to stay competitive in the food industry.
The information in this article is based on a press release statement from B&G Foods, Inc.
In other recent news, B&G Foods reported Q2 2024 results in line with expectations, with net sales of $444.6 million and an adjusted EBITDA of $64 million. Despite a slight decrease in base business net sales, the company saw growth in its Spices & Flavor Solutions and Meals segments. As part of recent developments, B&G Foods is reviewing its Frozen & Vegetables business unit for potential divestiture, aiming to focus on long-term growth areas. The company's adjusted gross profit saw a marginal increase, while SG&A expenses significantly reduced. B&G Foods has revised its full-year guidance, anticipating improved trends in the latter half of the year. The company's fiscal 2024 guidance estimates net sales between $1.945 billion and $1.97 billion, and adjusted EBITDA between $300 million and $315 million. Despite facing competition in the prepared meals category, B&G Foods remains confident in its strategic focus on growth areas and potential divestiture.
InvestingPro Insights
B&G Foods, Inc. (NYSE: BGS) has taken a significant step in managing its debt profile by announcing the redemption of its senior notes. As investors evaluate the implications of this move, key metrics and insights from InvestingPro provide a clearer picture of the company's financial health and future outlook.
InvestingPro Data shows that B&G Foods has a market capitalization of approximately $688.73 million, indicating the size of the company in the current market. Despite recent challenges, the company's gross profit remains substantial, with the last twelve months as of Q2 2024 reporting $443.98 million, reflecting a gross profit margin of 22.19%. This suggests that B&G Foods retains a strong ability to generate earnings relative to its revenue.
An InvestingPro Tip highlights that B&G Foods is expected to return to profitability this year, which aligns with the company's strategic financial management efforts. This is a crucial factor for investors considering the company's potential for growth and stability. Additionally, B&G Foods pays a significant dividend to shareholders, with a notable dividend yield of 8.74% as of the latest data, and has maintained dividend payments for 18 consecutive years, underscoring its commitment to returning value to investors.
For those interested in further analysis and additional InvestingPro Tips, there are 7 more tips available on the InvestingPro platform that delve into B&G Foods' financials and projections, accessible at https://www.investing.com/pro/BGS.
These insights offer a valuable perspective for investors as B&G Foods navigates the competitive food industry landscape and works to optimize its financial structure.
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