New Issue: Southern States Cooperative prices $130 million 11¼% five-year notes to yield 12%

By Paul A. Harris

St. Louis, April 28 - Southern States Cooperative, Inc. priced a $130 million issue of 11¼% five-year senior notes (B3/B+/) at 97.222 to yield 12% on Wednesday, according to an informed source.

The yield printed at the tight end of the 12% to 12¼% yield talk. The reoffer price came in line with discount talk of approximately 3 points.

Jefferies & Co. ran the books.

Proceeds will be used to refinance the cooperative's outstanding senior notes due 2011 and to make a contribution to its pension plan.

The issuer is a Richmond, Va.-based supplier of agricultural products and services east of the Mississippi River.

Issuer:	Southern States Cooperative, Inc.
Face amount:	$130 million
Proceeds:	$126,389,000 (approximate)
Maturity:	May 15, 2015
Securities:	Senior notes
Bookrunner:	Jefferies & Co.
Coupon:	11¼%
Price:	97.222
Yield:	12%
Call features:	Make-whole at Treasuries plus 50 bps until May 15, 2013, then callable at 105.625, par on and after May 15, 2014
Equity clawback:	35% at 111.25% until May 15, 2013
Change-of-control put:	101%
Trade date:	April 28
Settlement date:	May 6
Ratings:	Moody's: B3
	Standard & Poor's: B+
Distribution:	Rule 144A for life and Regulation S
Price talk:	12% to 12¼% yield, including approximately 3 points of OID

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