B&G To Partially Redeem $90M In Senior Notes

PARSIPPANY, N.J. (AP) — B&G Foods Inc. on Friday announced that it would redeem some of its 12 percent senior subordinated notes due 2016 with a principal amount of $90 million.

The Parsippany, N.J.-based company makes and sells food under brands such as Cream of Wheat, Grandma's Molasses, Ortega, Red Devil, Las Palmas and others.

B&G said the redemption would result in a $9.5 million pretax charge in its fourth quarter. That is comprised of a $5.4 million cash charge and a $4.1 million write-off of unamortized debt issuance costs.

The redemption price is 106 percent of the principal amount of the notes plus interest. B&G expects to complete the partial redemption on Nov. 2, when it will be left with $69.5 million in principal amount of notes.

Holders of the notes that are not redeemed will continue to receive interest at an annual rate of 12 percent of the principal amount.

B&G shares fell 80 cents, or 5 percent, to $15.32 in afternoon trading.