Flowers Foods, Inc. Raises $800 Million Through Senior Notes Offering for Acquisitions and Corporate Needs

Flowers Foods, Inc. Secures $800 Million in Senior Notes

On February 11, 2025, Flowers Foods, Inc. (NYSE: FLO), headquartered in Thomasville, Georgia, announced its strategic financial move by pricing a public offering of senior notes amounting to $800 million. This significant offering consists of two parts: $500 million of senior notes due in 2035 with a 5.750% interest rate, and $300 million of senior notes due in 2055 with a 6.200% interest rate. The close of this offering is anticipated for February 14, 2025, pending customary conditions.

Purpose of the Offering

The primary intention behind this financial maneuver is to fund the upcoming acquisition of Purposeful Foods Holdings, Inc., which is the parent company of Simple Mills, Inc. This acquisition aligns with Flowers Foods' strategy to expand its portfolio and enhance its market presence in the healthy food sector. In addition to funding this acquisition, the proceeds will also cover related fees and general corporate purposes, establishing a solid financial foundation for the company’s future growth.

Details of the Senior Notes

The 2035 senior notes will yield an annual 5.750% interest, set to mature on March 15, 2035, while the 2055 notes will provide an annual yield of 6.200%, maturing on March 15, 2055. This structured offering allows Flowers Foods to tap into the capital markets effectively, aiming to attract a diverse range of investors.

Financial Advisors and Management

The successful offering is aided by the expertise of several financial institutions serving as active book-running managers, including BofA Securities, Inc., Deutsche Bank Securities, RBC Capital Markets, and Wells Fargo Securities. Several other firms are participating as co-managers, showcasing a collaborative effort within the investment community to support Flowers Foods in this endeavor.

Regulatory Compliance and Transparency

The offering is made under an automatic shelf registration statement filed with the Securities and Exchange Commission (SEC) on August 21, 2023. Potential investors are encouraged to refer to the preliminary prospectus for comprehensive information on the offerings, including associated risks and factors that could influence Flowers Foods' performance in the market.

About Flowers Foods, Inc.

Flowers Foods is one of the largest producers of packaged bakery foods in the United States, generating net sales of $5.1 billion in 2024. The company’s product lineup includes well-loved brands such as Nature's Own, Dave's Killer Bread, and Tastykake, catering to a broad customer base with diverse preferences.

Industry Context and Future Prospects

The bread and bakery sector is witnessing significant evolution, with a growing consumer preference for healthier options. Flowers Foods' acquisition of Simple Mills signals a proactive approach to adapt to these market shifts and consumer demands. It reflects a broader trend within the industry as companies seek to diversify and innovate their product offerings to sustain competitive advantage.

With the financing in place, Flowers Foods is poised to enhance its strategic position while continuing to deliver quality products to its customers. Positive momentum from this offering may lead to increased investor interest in the company as it embarks on this new chapter of growth and expansion.