Published on 6/9/2004 in the Prospect News High Yield Daily.
New Issue: Stater Bros. sells upsized $700 million notes in two parts via Banc of America
By Paul A. Harris
St. Louis, June 9 - Stater Bros. Holdings Inc. increased its two-part high-yield bond offering (B1/BB-) to $700 million from $685 million and priced the issues on Wednesday, according to an informed source.
Banc of America Securities ran the books for the Rule 144A issues.
The Colton, Calif.-based supermarket chain sold $525 million of eight-year senior fixed-rate notes at 99.50 with an 8 1/8% coupon to yield 8.211%. Price talk was 8 1/8% to 8 3/8%.
The company also priced an upsized $175 million of six-year floating-rate senior notes at par with a coupon that will float at three-month Libor plus 350 basis points. Price talk was three-month Libor plus 350 to 375 basis points. The floating-rate tranche was increased from $160 million.
Proceeds will be used to fund the tender for the company's 10¾% senior notes due 2006, to pay for acquisition and construction of a new distribution center, and for general corporate purposes.
| Issuer: | Stater Bros. Holdings Inc.
|
| Amount: | $700 million, increased from $685 million
|
| Bookrunner: | Banc of America Securities
|
| Pricing date: | June 9
|
| Settlement date: | June 17
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
|
|
| Fixed-rate tranche
|
| Amount: | $525 million
|
| Maturity: | June 15, 2012
|
| Security description: | Senior notes
|
| Coupon: | 8 1/8%
|
| Price: | 99.50
|
| Yield: | 8.211%
|
| Spread: | 356 basis points
|
| Call features: | Callable after June 15, 2008 at 104.063, 102.031, par on or after June 15, 2010
|
| Equity clawback: | Until June 15, 2007 for 35% at 108.125
|
| Price talk: | 8 1/8%-8 3/8%
|
|
|
| Floating-rate tranche
|
| Amount: | $175 million, increased from $160 million
|
| Maturity: | June 15, 2010
|
| Security description: | Senior notes
|
| Coupon: | Three-month Libor plus 350 basis points
|
| Price: | Par
|
| Yield: | Three-month Libor plus 350 basis points
|
| Call features: | Callable after June 15, 2006 at 102, 101, par on or after June 15, 2008
|
| Price talk: | Three-month Libor plus 350-375 basis points
|
|
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