New Issue: Sbarro $150 million eight-year senior notes yield 10 3/8%

By Paul A. Harris

St. Louis, Jan. 24 - Sbarro, Inc. priced $150 million eight-year senior notes (Caa1/CCC) at par to yield 10 3/8% on Wednesday, according to an informed source.

The yield came tighter than the 10½% to 10¾% price talk.

Credit Suisse and Banc of America Securities LLC were joint bookrunners for the notes, which were placed via Rule 144A with registration rights and via Regulation S.

Proceeds will be used to help finance the acquisition of the company by MidOcean Partners III, LP and to fund the tender for Sbarro's 11% senior notes due 2009.

Sbarro is a Melville, N.Y.-based Italian restaurant company.

Issuer:	Sbarro, Inc.
Amount:	$150 million
Maturity:	Feb. 1, 2015
Security description:	Senior notes
Bookrunners:	Credit Suisse, Banc of America Securities LLC
Coupon:	10 3/8%
Price:	Par
Yield:	10 3/8%
Spread:	557 bps
Call features:	Callable on Feb. 1, 2010 at 107.781, 105.188, 102, 594, par on and after Feb. 1, 2013
Trade date:	Jan. 24
Settlement date:	Jan. 31
Ratings:	Moody's: Caa1
	Standard & Poor's: CCC
Distribution:	Rule 144A with registration rights/Regulation S
Price talk:	10½%-10¾%

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