Nutritional Sourcing tenders again for 10 1/8% notes

New York, May 17 - Nutritional Sourcing Corp. said it has begun a new tender offer for its 10 1/8% senior secured notes due 2009.

The Coral Gables, Fla., operator of supermarkets and video rental stores in Puerto Rico and the U.S. Virgin Islands said it will use up to $31.54 million to buy the notes. As a result, it will not buy back all the outstanding notes.

The amount to be paid depends on the number of notes tendered.

If up to $15 million of notes are submitted, Nutritional Sourcing will pay $770 per $1,000 principal amount; from more than $15 million to $30 million, it will pay $780 per $1,000 principal amount; from more than $30 million to $37,595,555.50, it will pay $790 per $1,000 principal amount and from $37,595,555.51 to $38 million, it will pay $830 per $1,000 principal amount.

Holders who tender will be deemed to have consented to an amendment to the note indenture. The change will allow Nutritional Sourcing to end reporting to the Securities and Exchange Commission. Instead it will supply noteholders with financial statements and a management discussion and analysis on a quarterly and annual basis.

The amendment is subject to a majority of notes being tendered and purchased. A majority of the notes outstanding and not owned by an affiliate is $37,595,555.51. There will be no separate consent fee.

The tender ends at 5 p.m. ET on June 15.

Funding for the tender will come from borrowings under the company's senior credit facility with Westernbank of Puerto Rico.

D.F. King Co., Inc. is information agent.

Nutritional Sourcing previously bought $14.301 million of the notes in a Dutch auction tender offer that ended in March. The price was $745 per $1,000 principal amount.

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