New Issue: Gold Kist $200 million 10-year notes yield 10½%

By Paul A. Harris

St. Louis, March 5 - Gold Kist Inc. sold $200 million of 10-year senior notes (B2/B-) Friday at 98.470 with a 10¼% coupon to yield 10½%, a syndicate source said.

Price talk was in the area of 10½%.

Credit Suisse First Boston ran the books on the Rule 144A/Regulation S issue. The co-managers were Rabo Securities USA, SunTrust Robinson Humphrey, ING Capital, Harris Nesbitt and CoBank.

Proceeds will be used to repay bank debt and for general corporate purposes.

The issuer is an Atlanta-based chicken processor.

Issuer:	Gold Kist Inc.
Amount:	$200 million
Maturity:	March 15, 2014
Security description:	Senior notes
Bookrunner:	Credit Suisse First Boston
Coupon:	10¼%
Price:	98.470
Yield:	10½%
Spread:	667 basis points
Call features:	Callable after March 15, 2009 at 105.125, 103.417, 101.708, par on and after March 15, 2012
Equity clawback:	Until March 15, 2007 at 110.25 for up to 35%
Trade date:	March 5
Settlement date:	March 10
Ratings:	Moody's: B2
	Standard & Poor's: B-
Price talk:	10½% area

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