Stater Bros. extends tender for 10¾% notes

New York, June 10 - Stater Bros. Holdings Inc. said it has extended its tender offer for any and all its $449.75 million principal amount of 10¾% senior notes due 2006 to 9 a.m. ET on June 17 from 9 a.m. ET on June 16.

The company said the extension is because of the federal holiday on June 11.

So far $397.7 million notes have been tendered.

On June 2 Stater Bros. announced it will pay $1,042.48 per $1,000 principal amount for any 10¾% notes tendered by the consent deadline.

Holders tendering after the consent deadline but before the expiration will receive $1,012.48 per $1,000 principal amount.

Stater Bros. said on May 14 it had begun a cash tender offer and consent solicitation for any and all of its $449.75 million principal amount of 10¾% notes.

For each $1,000 principal amount of notes tendered by the consent date, the company is offering to pay a price equal to the present value as of the determination date of the $1,026.875 price at which the notes become callable on Aug. 15, 2004 plus accrued interest up to the call date, discounted to a present value using the yield on the reference Treasury, the 6% note due Aug. 15, 2004.

Stater Bros. will also pay accrued interest up to but excluding the settlement date.

The price calculated includes a $30.00 per $1,000 principal amount consent payment. Stater Bros. is soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants.

Holders who tender after the consent deadline of 5 p.m. ET on May 27 will not receive the consent payment.

Consents may not be delivered without tendering or notes tendered without consents.

The Colton, Calif., supermarket operator said that based on the reference Treasury yield at 2 p.m. ET on May 14 the price for the notes would be $1,043.19.

The tender is subject to conditions including the receipt of financing and the receipt of consents of from holders of a majority of the principal amount of the notes.

Global Bondholder Services Corp. is the information agent (866 794-2200 or call collect 212 430-3774). Banc of America Securities LLC is the dealer manager and solicitation agent (contact High Yield Special Products at 888 292-0070 or collect 704 388-4813).

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