Quality Distribution talks $50 million add-on to Libor plus 450 bps notes at 93.00 area

By Paul A. Harris

St. Louis, Dec. 12 - Quality Distribution LLC set price talk for a $50 million add-on to its three-month Libor plus 450 basis points senior floating-rate notes due Jan. 15, 2012 (Caa1/CCC) at the 93.00 area on Wednesday, according to an informed source.

The books were scheduled to close at 3 p.m. ET Wednesday.

Credit Suisse is leading the Rule 144A with registration rights placement.

The notes are presently 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 5.5 years and a $2.5 million promissory note, will be used to consummate the acquisition of Boasso and 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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