By Paul A. Harris
St. Louis, Dec. 15 - Stripes Acquisition and Susser Finance priced a $170 million issue of eight-year senior notes (B2/B) at par on Thursday to yield 10 5/8%, according to an informed source.
The yield came at the tight end of the 10¾% area price talk.
Banc of America Securities LLC and Merrill Lynch & Co. were joint bookrunners for the notes, which were issued via Rule 144A with registration rights.
Proceeds will be used to partially fund the acquisition of Susser Holdings and to repay existing debt.
The issuer is a Houston-based independent convenience store operator and non-refining fuel distributor.
| Issuers: | Stripes Acquisition and Susser Finance
|
| Amount: | $170 million
|
| Maturity: | Dec. 15, 2013
|
| Security description: | Senior notes
|
| Bookrunners: | Banc of America Securities LLC, Merrill Lynch & Co.
|
| Coupon: | 10 5/8%
|
| Price: | Par
|
| Yield: | 10 5/8%
|
| Spread: | 613 basis points
|
| Call features: | Callable after Dec. 15, 2009 at 105.313, 102.656, par on and after Dec. 15, 2011
|
| Equity clawback: | Until Dec. 15, 2008 for 35% at 110.625
|
| Trade date: | Dec. 15
|
| Settlement date: | Dec. 21
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 10¾% area
|
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