New Issue: O'Sullivan Industries quick-to-market $100 million five-year notes yield 12%

By Paul A. Harris

St. Louis, Sept. 26 - O'Sullivan Industries, Inc. priced a quick-to-market offering of $100 million 10.63% senior secured notes due Oct. 1, 2008 (existing ratings Caa1/B-) at 95 Friday to yield 12%, according to an informed source.

The sale generated $95 million of proceeds

Credit Suisse First Boston ran the books on the Rule 144A/Regulation S offering.

The Lamar, Mo. manufacturer of ready-to-assemble furniture will use proceeds to repay its $88.3 million of secured credit facilities and for working capital and general corporate purposes.

Issuer:	O'Sullivan Industries, Inc.
Security description:	Senior secured notes
Bookrunner:	Credit Suisse First Boston
Amount:	$100 million
Proceeds:	$95 million
Maturity:	Oct. 1, 2008
Coupon:	10.63%
Price:	95
Yield:	12%
Spread:	900 basis points over 3 1/8% Treasury due September 2008
Call features:	Callable after Oct. 1, 2006 at 105.315, then at par on Oct. 1, 2007 and thereafter
Equity clawback:	Until Oct. 1, 2006 at 110.63 for up to 35%
Settlement date:	Sept. 29 (T+1)
Expected ratings:	Moody's: Caa1
	Standard & Poor's: B-
Rule 144A Cusip:	67104RAE4

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