EXHIBIT 99.2
12500 West Creek Parkway
Richmond, VA 23238
Phone (804) 484-7700
FAX (804) 484-7701
(PFG LOGO)
NEWS RELEASE
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FOR MORE INFORMATION:
INVESTOR CONTACT:
MEDIA CONTACT: KEVIN COLLIER
CHERYL MOORE DIRECTOR, INVESTOR RELATIONS
DIRECTOR, CORPORATE COMMUNICATIONS (804) 287-8109
(804) 484-6273
PERFORMANCE FOOD GROUP ANNOUNCES
REDEMPTION OF OUTSTANDING CONVERTIBLE SUBORDINATED NOTES
RICHMOND, VA. (SEPT. 17, 2004) - Performance Food Group (Nasdaq/NM:PFGC)
announced today it has called for redemption on October 18, 2004, all of its
outstanding 5 1/2% convertible subordinated notes due October 16, 2008 (the
"Notes"). There are $201.25 million in aggregate principal amount of Notes
currently outstanding.
Holders will have their Notes redeemed at a redemption price of $1,031.429 per
$1,000 principal amount of Notes, consisting of the principal amount and $31.429
in redemption premium. Accrued and unpaid interest to the date of redemption
will be paid to record Holders of the Notes as well. Interest will thereafter
cease to accrue on the Notes. Alternatively, until the close of business on
October 15, 2004, Holders of the Notes may convert their Notes into shares of
Performance Food Group Company common stock at a conversion price of $32.95 per
share, or 30.349 shares of Performance Food Group Company's common stock per
$1,000 principal amount of the Notes. On September 16, 2004, the closing price
of Performance Food Company's common stock on the Nasdaq Stock Market's national
market was $22.94 per share. Notice of Redemption is being mailed to all
registered Holders of the Notes. The Company expects that it will record a
pre-tax charge in the fourth quarter of 2004 in the aggregate amount of
approximately $10.1 million ($0.13 per diluted share) to reflect the payment of
the redemption premium and write off of unamortized debt issuance costs.
Bob Sledd, Chairman and Chief Executive Officer noted, "We believe that this
decision provides a capital structure which supports our growth while providing
longer term earnings accretion."
The Company expects to fund the redemption with borrowings under the Company's
revolving credit facility.
Performance Food Group markets and distributes more than 64,000 national and
private label food and food-related products to approximately 48,000
restaurants, hotels, cafeterias, schools, healthcare facilities and other
institutions. The Fresh Express(R) line is the industry leader and pioneer of
fresh packaged salads. For more information on Performance Food Group, visit
www.pfgc.com.
Certain statements made herein are forward-looking statements under the
Private Securities Litigation Reform Act of 1995. These statements involve risks
and uncertainties and are based on current expectations and management's
estimates; actual results may differ materially. The risks and uncertainties
which could impact these statements include, but are not limited to, general
economic conditions; the relatively low margins and economic sensitivity of the
foodservice business; the Company's reliance on major customers; the level of
demand for the company's fresh-cut products; the outcome of the Company's
exploration of strategic alternatives for its fresh-cut business; the ability to
identify and successfully complete acquisitions of other foodservice
distributors; the Company's ability to successfully develop, produce and market
new products and management of the Company's planned growth, including the
Company's ability to successfully manage the transition of its sales mix and
related production costs, all as detailed from time to time in the reports filed
by the Company with the Securities and Exchange Commission.