By Paul A. Harris
St. Louis, April 30 - Ingles Markets, Inc. priced an upsized $575 million issue of 8 7/8% eight-year notes (B1/BB-/) at 96.548 to yield 9½% on Thursday, according to an informed source.
The yield was printed at the tight end of the 9½% to 9¾% price talk, and the order book was multiple-times oversubscribed, according to the source, who added that the company is well-known to and liked by high-yield investors.
Banc of America Securities LLC and Wachovia Securities were joint bookrunners for the Rule 144A with registration rights issue, which was upsized from $500 million. BB&T Capital Markets was a co-manager.
Proceeds will be used to fund the tender for the company's existing 8 7/8% senior subordinated notes due 2011, as well as to repay other debt, to fund capital expenditures and for general corporate purposes.
The issuer is an Asheville, N.C., supermarket chain with operations in six southeastern states.
| Issuer: | Ingles Markets, Inc.
|
| Amount: | $575 million, upsized from $500 million
|
| Maturity: | May 15, 2017
|
| Security description: | Senior notes
|
| Bookrunners: | Banc of America Securities LLC, Wachovia Securities
|
| Co-manager: | BB&T Capital Markets
|
| Coupon: | 8 7/8%
|
| Price: | 96.548
|
| Yield: | 9½%
|
| Spread: | 664 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until May 15, 2013, then callable at a premium
|
| Equity clawback: | Until May 15, 2012 for 35% at 108.875
|
| Trade date: | April 30
|
| Settlement date: | May 12
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 9½% to 9¾%
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
