New Issue: Stater Brothers prices $255 million eight-year notes at par to yield 7 3/8%

By Paul A. Harris

St. Louis, Nov. 12 - Stater Bros. Holdings Inc. priced a $255 million issue of eight-year senior notes (B2/B+/) at par to yield 7 3/8% on Friday, according to an informed source.

The yield printed at the tight end of the 7 3/8% to 7½% price talk.

Bank of America Merrill Lynch ran the books for the quick-to-market deal.

Proceeds, together with cash on hand and proceeds from a new term loan, will be used to purchase, redeem or otherwise retire the company's 8 1/8% senior notes due 2012.

Stater Bros. is a San Bernardino, Calif., supermarket chain.

Issuer:	Stater Bros. Holdings Inc.
Amount:	$255 million
Maturity:	Nov. 15, 2018
Securities:	Senior notes
Bookrunner:	Bank of America Merrill Lynch
Coupon:	7 3/8%
Price:	Par
Yield:	7 3/8%
Spread:	514 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Nov. 15, 2013, then callable at 105.531, 103.688, 101.844, par on and after Nov. 15, 2016
Equity clawback:	35% at 107.375 until Nov. 15, 2013
Change-of-control put:	101%
Trade date:	Nov. 12
Settlement date:	Nov. 29
Ratings:	Moody's: B2
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	7 3/8% to 7½%
Marketing:	Quick to market

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