New Issue: Alderwoods sells $200 million eight-year notes to yield 7¾%

By Paul A. Harris

St. Louis, Aug. 5 - Alderwoods Group Inc. sold $200 million of eight-year senior notes (B2/B) on Thursday at par to yield 7¾%, according to a syndicate source.

Price talk was in the 7¾% area.

Banc of America Securities LLC and Morgan Stanley ran the books for the Rule 144A with registration rights issue.

The Cincinnati funeral home and cemetery operator will use the proceeds to fund the tender for its 12¼% senior notes due 2009 and to repay a subordinated loan due 2005.

Issuer:	Alderwoods Group Inc.
Amount:	$200 million
Maturity:	Sept. 15, 2012
Security description:	Senior notes
Bookrunners:	Banc of America Securities LLC, Morgan Stanley
Coupon:	7¾%
Price:	Par
Yield:	7¾%
Spread:	355 basis points
Call features:	Callable after Sept. 15, 2008 at 103.875, 101.938, par on or after Sept. 15, 2010
Equity clawback:	Until Sept. 15, 2007 for 35% at 107.75
Pricing date:	Aug. 5
Settlement date:	Aug. 19
Ratings:	Moody's: B2
	Standard & Poor's: B
Price talk:	7¾% area

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