New Issue: Jafra Cosmetics upsizes eight-year notes to $200 million, yield 10¾%

By Paul A. Harris

St. Louis, May 2 - Jafra Cosmetics International, Inc. and Distribuidora Comercial Jafra, SA de CV priced an upsized $200 million of senior subordinated notes due May 15, 2011 (B3/B-) at par Friday to yield 10¾%.

Price talk was for a yield of 10¾ %-11%. The deal was announced at $175 million.

Credit Suisse First Boston was the bookrunner. Merrill Lynch & Co. was co-manager.

Proceeds from the Rule 144A offering will be used to help repay the credit facility, redeem the 11¾% senior subordinated notes due 2008 and make a distribution to equity holders.

The issuer is a manufacturer of cosmetics and beauty care products.

Issuer:	Jafra Cosmetics International, Inc. and Distribuidora Comercial Jafra, SA de CV
Amount:	$200 million (increased from $175 million)
Maturity:	May 15, 2011
Security description:	Senior subordinated notes
Bookrunner:	Credit Suisse First Boston
Co-manager:	Merrill Lynch
Coupon:	10¾%
Price:	Par
Yield:	10¾%
Spread:	706 basis points over 5% Treasury due August 2011
Call Features:	Callable on May 15, 2007 at 105.375, then 102.688, declining to par on May 15, 2009 and thereafter
Equity clawback:	Until May 15, 2006 at 110.750 for up to 35%
Settlement date:	May 20, 2003 (T+12)
Ratings:	Moody's: B3
	Standard & Poor's: B-
Rule 144A Cusip:	47007PAA6

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