Quality Distribution $125 million seven-year notes talked at 9%-9¼%, pricing Thursday

By Paul A. Harris

St. Louis, Nov. 5 - Price talk of 9%-9¼% emerged Wednesday on Quality Distribution, LLC's upcoming sale of $125 million seven-year senior subordinated notes (B3/B-) according to a syndicate source.

The deal is expected to price Thursday.

Credit Suisse First Boston and Deutsche Bank Securities are joint bookrunners on the Rule 144A offer. Bear Stearns & Co. and JP Morgan are co-managers.

The notes will be non-callable for four years.

The bond deal is part of the financing that also includes a $112 million IPO of common stock scheduled to price simultaneous with the bonds and a $235 million credit facility.

Quality Distribution will use proceeds to repay its existing credit facility and redeem its 12½% senior subordinated secured notes, 10% senior subordinated notes and 12% junior PIK notes.

The prospective issuer is a Tampa, Fla. transportation company.

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