New Issue: Michael Foods sells $150 million 10-year notes to yield 8%

By Paul A. Harris

St. Louis, Nov. 7 - Michael Foods, Inc. sold $150 million of senior subordinated notes due Nov. 15, 2013 (B3 expected/B-) at par Thursday to yield 8%, according to a syndicate source.

Price talk was for a yield in the 8% area.

Banc of America Securities, Deutsche Bank Securities and UBS Investment Bank were joint bookrunners on the Rule 144 deal.

Proceeds will be used to finance the leveraged buyout of the company by Thomas H. Lee Partners.

The issuer is a Minnetonka, Minn. diversified food processor.

Issuer:	Michael Foods, Inc.
Amount:	$150 million
Maturity:	Nov. 15, 2013
Security description:	Senior subordinated notes
Bookrunners:	Banc of America Securities, Deutsche Bank Securities, UBS Investment Bank
Coupon:	8%
Price:	Par
Yield:	8%
Spread:	359 basis points
Call features:	Callable on Nov. 15, 2008 at 104.0, then 102.667, 101.334, declining to par on Nov. 15, 2011 and thereafter
Equity clawback:	Until Nov. 15, 2006 for 40% at 108.0
Settlement date:	Nov. 20, 2003 (T+9)
Ratings:	Moody's: B3 expected
	Standard & Poor's: B-
Price talk:	8% area

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