New Issue: Stewart Enterprises $200 million eight-year notes yield 6¼%

By Paul A. Harris

St. Louis, Feb. 2 - Stewart Enterprises Inc. priced $200 million of eight-year senior notes (B1/BB-) at par to yield 6¼%, according to a market source.

Price talk was 6¼% to 6 3/8%.

Banc of America Securities LLC ran the books for the Rule 144A issue. Bear Stearns & Co. and Merrill Lynch & Co. were joint leads. Calyon Securities and SunTrust Robinson Humphrey were co-managers.

Proceeds, along with the company's new approximately $130 million secured credit facility and available cash, will be used to purchase $300 million of its 10¾% senior subordinated notes.

The company is a Jefferson, La.-based provider of funeral services.

Issuer:	Stewart Enterprises Inc.
Amount:	$200 million
Maturity:	Feb. 15, 2013
Security description:	Senior notes
Bookrunner:	Bank of America Securities LLC
Joint lead managers:	Bear Stearns & Co., Merrill Lynch & Co.
Co-managers:	Calyon Securities, SunTrust Robinson Humphrey
Coupon:	6¼%
Price:	Par
Yield:	6¼%
Spread:	222 basis points
Call features:	Callable after Feb. 15, 2009 at 103.125, 101.563, par on and after Feb. 15, 2011
Equity clawback:	Until Feb. 15, 2008 for 35% at 106.25
Trade date:	Feb. 2
Settlement date:	Feb. 11
Ratings:	Moody's: B1
	Standard & Poor's: BB-
Price talk:	6¼%-6 3/8%

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