Quality Distribution to sell $50 million additional floaters due 2012

By Paul A. Harris

St. Louis, Dec. 7 - Quality Distribution LLC will begin a brief roadshow on Monday for a $50 million add-on to the company's three-month Libor plus 450 basis points senior floating-rate notes due Jan. 15, 2012 (Caa1/CCC), according to a market source.

Pricing is expected on Wednesday.

Credit Suisse has the books for the notes, which are being marketed via Rule 144A with registration rights.

The notes are callable at 102. On Jan. 15, 2007 the call premium declines to 101.

Proceeds, along with cash on hand, amounts drawn under a new senior secured asset-based revolver with a maturity of 5½ years and a $2.5 million promissory note will be used to consummate the acquisition of Boasso and to refinance bank debt.

The original $85 million issue priced at par in January 2005.

The issuer is a Tampa, Fla.-based freight company.

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