New Issue: Stratus Technologies sells $170 million five-year notes to yield 10 3/8%

By Paul A. Harris

St. Louis, Nov. 7 - Stratus Technologies, Inc. sold $170 million of senior notes due Dec. 1, 2008 (B3/B) at par Thursday to yield 10 3/8%, according to a syndicate source.

Price talk was for a yield of 10¼%-10½%.

Goldman Sachs & Co. and JP Morgan ran the books on the Rule 144A offer. The co-manager was Fleet Securities.

Stratus will use proceeds to repay debt and to repurchase common and preferred shares.

The issuer is a Maynard, Mass.-based provider of continuously available servers.

Issuer:	Status Technologies, Inc.
Amount:	$170 million
Maturity:	Dec. 1, 2008
Security description:	Senior notes
Bookrunners:	Goldman Sachs, JP Morgan
Co-manager:	Fleet Securities
Coupon:	10 3/8%
Price:	Par
Yield:	10 3/8%
Spread:	696 basis points
Call features:	Callable after Dec. 1, 2006 at 105.188, then 102.594
Equity clawback:	Until Dec. 1, 2006 for 35% at 110.375
Settlemet date:	Nov. 18, 2003 (T+7)
Ratings:	Moody's: B3
	Standard & Poor's: B
Price talk:	10¼%-10½%

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