Eurofresh issues price talk on $195 million two-part note offering

By Paul A. Harris

St. Louis, Dec. 14 - Eurofresh Inc. issued price talk Wednesday on its $195 million offering of high-yield notes, according to an informed source.

The issue is expected to price on Thursday or Friday.

The company is talking its $170 million tranche of eight-year senior notes at 11¼% to 11½%. The notes come with four years of call protection. Moody's Investors Service assigns its B3 rating to the senior notes. Standard & Poor's rates them B-.

Meanwhile Eurofresh is talking its $25 million tranche of nine-year senior subordinated discount notes 300 basis points area behind the senior notes. The discount notes come with four years of call protection and will be payable in kind for the first four years. Moody's rates the discount notes Caa2. S&P rates them CCC+.

Banc of America Securities LLC has the books for the Rule 144A notes.

Proceeds, along with proceeds from the company's new credit facility and the sale of stock, will be used to fund the recapitalization of the company.

Eurofresh is a Willcox, Ariz., greenhouse tomato producer.

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