New Issue: Ingles Markets upsizes 10-year notes to $250 million, yields 9%

By Paul A. Harris

St. Louis, Mo., Dec. 4 - Ingles Markets Inc. priced $250 million of senior subordinated notes due Dec. 1, 2011 Tuesday at 99.186 to yield 9%, in line with price talk of the 9% area, although that had been reduced from 9% to 9¼% earlier, according to a syndicate source. The deal was upsized from the originally announced amount of $200 million.

"This went very, very well," the source said. "It was multiple times over-subscribed."

Merrill Lynch & Co. and Banc of America Securities were joint bookrunners. Wachovia Securities and ABN Amro were co-managers.

Issuer:	Ingles Markets, Inc.
Amount:	$250 million (upsized from $200 million)
Maturity:	Dec. 1, 2011
Type:	Senior subordinated notes
Bookrunners:	Merrill Lynch & Co., Banc of America Securities
Co-managers:	Wachovia Securities, and ABN Amro
Coupon:	8 7/8%
Price:	99.186
Yield:	9%
Spread:	432 basis points
Call features:	Callable on Dec. 1, 2006 at 104.438, then at 102.903, 101.369,
	declining to par on Dec. 1, 2009
Equity clawback:	Three years for 35% at 108.875
Settlement date:	Dec. 11 (T+5) flat
Ratings:	Moody's: Ba3
	Standard & Poor's: B+
Cusip:	457030AB0
End

© 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.