New Issue: Stater Bros. upsized $285 million eight-year notes yield 7¾%

By Paul A. Harris

St. Louis, April 3 - Stater Bros. Holdings Inc. priced an upsized $285 million issue of eight-year senior notes (B2/B+) at par to yield 7¾% on Tuesday, according to an informed.

The issue, which was upsized from $275 million, priced on top of the price talk.

Banc of America Securities LLC was the bookrunner for the Rule 144A and Regulation S with registration rights deal.

Proceeds will be used to redeem all of the Colton, Calif., supermarket chain's $175 million floating-rate senior notes due 2010, to fund construction of its new distribution center and corporate offices, to purchase $15 million of its class A common stock and to pay a $5 million dividend to La Cadena Investments, its sole shareholder. Any remaining proceeds will be used for general corporate purposes.

Issuer:	Stater Bros. Holdings, Inc.
Amount:	$285 million (increased from $275 million)
Maturity:	April 15, 2015
Security description:	Senior notes
Bookrunner:	Banc of America Securities LLC
Coupon:	7¾%
Price:	Par
Yield:	7¾%
Spread:	311 bps
Call protection:	Callable on April 15, 2011 at 103.875, 101.938, par on and after April 15, 2013
Equity clawback:	Until April 15, 2010 for 35% at 107.75
Trade date:	April 3
Settlement date:	April 18
Ratings:	Moody's: B2
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	7¾% area

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.