New Issue: C&S sells upsized $300 million seven-year notes at par to yield 8 3/8%

By Paul A. Harris

St. Louis, April 16 - C&S Group Enterprises LLC priced an upsized $300 million issue of seven-year senior secured notes (B2/BB-/) at par to yield 8 3/8% on Friday, according to an informed source.

The yield printed in the middle of the 8¼% to 8½% price talk.

J.P. Morgan Securities Inc. was the left bookrunner for the deal, which was upsized from $250 million. Barclays Capital Inc. and Bank of America Merrill Lynch were the joint bookrunners.

Co-managers were BMO Capital Markets Corp., RBS Securities Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC

The Keene, N.H.-based wholesale grocery distributor will use the proceeds to repay a portion of its ABL borrowings.

Issuer:	C&S Group Enterprises LLC
Amount:	$300 million
Maturity:	May 1, 2017
Securities:	Senior secured notes
Left bookrunner:	J.P. Morgan Securities Inc.
Joint bookrunners:	Barclays Capital Inc., Bank of America Merrill Lynch
Co-managers:	BMO Capital Markets Corp., RBS Securities Inc., U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC
Coupon:	8 3/8%
Price:	Par
Yield:	8 3/8%
Spread:	517 bps
Call features:	Make-whole call at Treasuries plus 50 bps until May 1, 2014, then callable at 104.188, 102.094, par on and after May 1, 2016 (special annual call at 103.0 for up to $30 million of the notes in any 12-month period beginning on the issue date or the first or second anniversary thereof)
Equity clawback:	35% at 108.375 until May 1, 2013
Change-of-control put:	101%
Trade date:	April 16
Settlement date:	April 27
Ratings:	Moody's: B2
	Standard & Poor's: BB-
Distribution:	Rule 144A/Regulation S for life
Price talk:	8¼% to 8½%

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