Stratus Technologies sets price talk for $215 million five-year notes

By Paul A. Harris

St. Louis, March 30 - Stratus Technologies, Inc. set price talk for its $215 million offering of five-year senior secured notes on Tuesday, according to an informed source.

The notes are talked with a 12% coupon, to price at 96.40, for a 13% yield. The deal also includes 10% of the company's equity.

Books close at 3 p.m. ET on Wednesday. Pricing will follow thereafter.

The bonds, which will be non-callable for the first three years, will be distributed via Rule 144A, without registration rights.

The deal comes to market via bookrunner Jefferies & Co.

Stratus, a Maynard, Mass.-based information technology company that operates computer network servers, plans to use the deal proceeds to repay certain outstanding bank debt.

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