Sara Lee launches tender offer for $1.11 billion 6.25% notes due 2011

By Susanna Moon

Chicago, Aug. 30 - Sara Lee Corp. said it began a cash tender offer for any and all of its 6.25% notes due Sept. 15, 2011, of which $1.11 billion principal amount is outstanding.

The payment for each $1,000 principal amount of the notes will be set using 20 basis points over the bid-side yield to maturity of the 1% U.S. Treasury notes due Aug. 31, 2011.

Pricing will be set at 2 p.m. ET on Sept. 7, the expiration date. The tender offer will end at 5 p.m. ET.

Holders also will receive accrued interest to the settlement date. The settlement date for the tender offer is expected to be "promptly" after the expiration, according to a company press release.

The tender offer does not have any minimum tender condition but is subject to a financing condition.

Sara Lee said it intends to use proceeds of an offering plus cash on hand or commercial paper issuances to fund the purchase of the 6.25% notes.

Morgan Stanley & Co. Inc. (800 624-1808 or collect at 212 761-5384) is the dealer manager. D.F. King & Co., Inc. (800 714-3312 toll free or collect 212 269-5550) is the depositary and information agent.

Sara Lee is a manufacturer and marketer of brand-name consumer products focused primarily on the meats, bakery, beverage and household products categories based in Downers Grove, Ill.

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