New Issue: U.S. Foodservice prices $400 million 8½% eight-year notes at par

By Paul A. Harris

Portland, Ore., May 6 - U.S. Foodservice, Inc. priced a $400 million issue of eight-year senior notes (Caa2/CCC+/) at par to yield 8½% on Friday, according to market sources.

The yield printed 12.5 basis points beyond the wide end of price talk that had been set in the 8½% area.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc. and Wells Fargo Securities LLC were the joint bookrunners.

The Columbia, Md., broadline foodservice distributor plans to use the proceeds to refinance debt and for general corporate purposes.

Issuer:	U.S. Foodservice, Inc.
Amount:	$400 million
Maturity:	June 30, 2019
Securities:	Senior notes
Bookrunners:	Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc., Wells Fargo Securities LLC
Co-manager:	KKR Capital Markets, BMO Nesbitt Burns
Coupon:	8½%
Price:	Par
Yield:	8½%
Spread:	566 bps
Call protection:	Three years
Trade date:	May 6
Settlement date:	May 11
Ratings:	Moody's: Caa2
	Standard & Poor's: CCC+
Distribution:	Rule 144A with registration rights
Price talk:	8¼% area
Marketing:	Roadshow

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