New Issue: Avondale Mills $150 million 10-year notes yield 10¼%

By Paul A. Harris

St. Louis, June 25 - Avondale Mills, Inc. sold $150 million of senior subordinated notes due July 1, 2013 (B3/B+) at par Wednesday to yield 10¼%, according to an informed source.

Price talk was for a yield in the 10¼% area.

Wachovia Securities, Inc. was the bookrunner for the Rule 144A/Regulation S offering.

Proceeds will be used to redeem the 10¼% senior subordinated notes due 2006 for $127.1 million plus interest, to repay debt under the existing revolver and for general corporate purposes

The issuer is a Monroe, Ga. textile manufacturer.

Issuer:	Avondale Mills, Inc.
Amount:	$150 million
Maturity:	July 1, 2013
Security description:	Senior subordinated notes
Bookrunner:	Wachovia Securities
Coupon:	10¼%
Price:	Par
Yield:	10¼%
Spread:	693 basis points
Call features:	July 1, 2008 105.125, then at 103.417, 101.708, declining to par on July 1, 2011 and thereafter
Equity clawback:	Up to 35% at 110.2 until July 1, 2006
Settlement date:	June 30, 2003 (T + 3)
Ratings:	Moody's: B3
	Standard & Poor's B+
Rule 144A Cusip:	054402AA0

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