Roundy's restructures $175 million note offering; eight-year notes talked 10¼%-10½%

By Paul A. Harris

St. Louis, Oct. 25 - Roundy's Supermarkets Inc. restructured its downsized $175 million offering of high-yield notes on Tuesday, according to market sources.

The company now plans to sell $175 million of eight-year senior fixed-rate notes, non-callable for four years. Price talk is 10¼% to 10½%. Pricing is expected on Wednesday.

Bear Stearns & Co. and Goldman Sachs & Co. are joint bookrunners for the Rule 144A with registration rights offering.

Previously the company had been marketing a $175 million tranche of seven-year floating-rate notes.

In addition to Tuesday's restructuring, covenant changes were made to the notes, sources said.

Last week Roundy's dropped a proposed $150 million tranche of eight-year senior subordinated notes and subsequently lowered the amount of the dividend that it plans to pay to its principal shareholder, Willis Stein & Partners III, LP, to $400 million from $550 million.

Roundy's is a Milwaukee-based wholesale distributor of food and non-food products to midwestern supermarkets. The company also has retail stores in the Midwest.

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