New Issue: Stratos Global $150 million seven-year notes yield 9 7/8%

By Paul A. Harris

St. Louis, Feb. 8 - Stratos Global Corp. priced a $150 million issue of seven-year senior notes (B2/B) at par on Wednesday to yield 9 7/8%, according to an informed source.

The yield came at the wide end of the 9¾% area price talk.

RBC Capital Markets and Banc of America Securities LLC were joint bookrunners for the notes, which were sold via Rule 144A with registration rights and via Regulation S. The co-managers were CIBC World Markets and Scotia Capital.

Proceeds will be used to fund the acquisition of Xantic BV.

The issuer is a St. John's, Newfoundland, global provider of remote telecommunications services.

Issuer:	Stratos Global Corp.
Amount:	$150 million
Maturity:	Feb. 15, 2013
Security description:	Senior notes
Bookrunners:	RBC Capital Markets, Banc of America Securities LLC
Co-managers:	CIBC World Markets, Scotia Capital
Coupon:	9 7/8%
Price:	Par
Yield:	9 7/8%
Spread:	528 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Feb. 15, 2010, then at 104.938, 102.469, par on and after Feb. 15, 2012
Equity clawback:	Until Feb. 15, 2009 for 35% at 109.875
Trade date:	Feb. 8
Settlement date:	Feb. 13
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A with registration rights and Regulation S
Price talk:	9¾% area

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