New Issue: Nash Finch sells $150 million proceeds cash-to-zero convertible to yield 3.5%, up 36.5%

Nashville, March 10 - Nash Finch Co. sold $150 million in proceeds of 30-year cash-to-zero convertible notes at 46.611 to yield 3.5% with a 36.5% initial conversion premium via bookrunner Merrill Lynch & Co. The issue will pay a cash coupon of 1.6314% on the face amount of $322 million for eight years.

The Rule 144A deal priced cheaply outside of yield talk for a yield to maturity of 2.75% to 3.25% and at the cheap end of premium guidance of 32.5% to 37.5%.

Minneapolis-based Nash Finch, a food distributor, said proceeds would be used for its $225 million asset acquisition from Roundy's Inc., or alternatively to repay part of a term loan under its senior credit facility.

Terms of the deal are:

Issuer:	Nash Finch Co.
Issue:	Convertible discount cash-to-zero senior subordinated notes
Bookrunner:	Merrill Lynch & Co.
Amount:	$150 million proceeds, $322 million face
Greenshoe:	$15 million proceeds
Maturity:	March 15, 2035
Coupon:	1.6314% on face amount for 8 years
Price:	46.611
Yield to maturity:	3.5%
Conversion premium:	36.5%
Conversion price:	$50.05
Conversion ratio:	0.9313
Contingent conversion:	130%
Contingent payment:	130%
Dividend protection:	Yes
Takeover protection:	Yes
Call:	Non-callable for 8 years
Put:	In year 8, 10, 15, 20 and 25
Expected ratings:	Moody's: B3
	S&P: B-
Price talk:	2.75-3.25%, up 32.5-37.5%
Pricing date:	March 9, after market close
Settlement date:	March 15
Distribution:	Rule 144A

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