U.S. Foodservice Cancels Bond Offering in Buyout Deal

Officials of Ahold said the company expects to complete its pending sale of U.S. Foodservice to private equity interests despite the unit pulling back a bond offering that would have helped finance the deal, reports said Wednesday.

AMSTERDAM — Officials of Ahold said the company expects to complete its pending sale of U.S. Foodservice to private equity interests despite the unit pulling back a bond offering that would have helped finance the deal, reports said Wednesday. USF canceled a planned $650 million bond offering this week due to weak market conditions. The offering would have helped finance the $7.1 billion purchase by Clayton, Dubilier & Rice and Kohlberg Kravis Roberts. According to one bond analyst, “The feeling is that the price of the deal was off-the-charts high.”

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