Stater Bros. starts tender offer for 8 1/8% notes, solicits consents

By Devika Patel

Knoxville, Tenn., Nov. 12 - Stater Bros. Holdings Inc. said it has begun a cash tender offer for all $525 million of its 8 1/8% senior notes due 2012.

Stater is also soliciting consents to amend the notes' indenture, which requires the consents of holders of at least a majority of the notes.

The offer is scheduled to expire at 11:59 p.m. ET on Dec. 10. The consent payment deadline is 5 p.m. ET on Nov. 26.

Holders who tender their notes and provide their consents prior to the consent payment deadline will receive the total consideration of $1,003.75 per $1,000 of notes, which includes a consent payment of $10.00 per $1,000 of notes, plus interest up to but excluding the payment date. Holders who tender after the consent payment deadline but before the expiration date will receive $993.75 per $1,000 of notes.

The offer is conditional upon the company completing a $132 million debt financing to fund the repurchase, among other things.

The company will redeem any remaining notes following the completion of the tender.

Bank of America Merrill Lynch (888 292-0070 or 980 388-9217) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 873-6300 or 212 430-3774) is the information agent.

Stater is a Colton, Calif., supermarket chain.

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