Stater Bros. sets pricing on tender offer

New York, June 2 - Stater Bros. Holdings Inc. said it will pay $1,042.48 per $1,000 principal amount in its tender offer for any and all of its $449.75 million principal amount of 10¾% senior notes due 2006 for notes tendered by the consent deadline.

Holders tendering after the consent deadline but before the expiration will receive $1,012.48 per $1,000 principal amount.

The offer expires at 9 a.m. ET on June 16.

Stater Bros. said on May 14 it had begun a cash tender offer and consent solicitation for any and all of its $449.75 million principal amount of 10¾% notes.

For each $1,000 principal amount of notes tendered by the consent date, the company is offering to pay a price equal to the present value as of the determination date of the $1,026.875 price at which the notes become callable on Aug. 15, 2004 plus accrued interest up to the call date, discounted to a present value using the yield on the reference Treasury, the 6% note due Aug. 15, 2004.

Stater Bros. will also pay accrued interest up to but excluding the settlement date.

The price calculated includes a $30.00 per $1,000 principal amount consent payment. Stater Bros. is soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants.

Holders who tender after the consent deadline of 5 p.m. ET on May 27 will not receive the consent payment.

Consents may not be delivered without tendering or notes tendered without consents.

The Colton, Calif. supermarket operator said that based on the reference Treasury yield at 2 p.m. ET on May 14 the price for the notes would be $1,043.19.

The tender is subject to conditions including the receipt of financing and the receipt of consents of from holders of a majority of the principal amount of the notes.

Global Bondholder Services Corp. is the information agent (866 794-2200 or call collect 212 430-3774). Banc of America Securities LLC is the dealer manager and solicitation agent (contact High Yield Special Products at 888 292-0070 or collect 704 388-4813).

© 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.