New Issue: Roundy's prices $200 million 10¼% seven-year notes to yield 10 7/8%

By Paul A. Harris

Portland, Ore., Dec. 13 - Roundy's Supermarkets, Inc. priced a $200 million issue of 10¼% seven-year senior secured second-lien notes (B3/CCC/) at 96.999 to yield 10 7/8% on Friday, according to an informed source.

The deal came at the tight end of price talk that specified a discount as well as a yield in the 11% area.

Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC were the joint bookrunners.

The Milwaukee-based supermarket chain plans to use the proceeds to fund the acquisition of Dominick's stores and to repay debt.

Issuer:	Roundy's Supermarkets, Inc.
Face amount:	$200 million
Proceeds:	$194 million
Maturity:	Dec. 15, 2020
Securities:	Senior secured second-lien notes
Bookrunners:	Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC
Coupon:	10¼%
Price:	96.999
Yield:	10 7/8%
Spread:	865 bps
First call:	Dec. 15, 2016 at 107.688
Equity clawback:	35% at 110.25 until Dec. 15, 2016
Trade date:	Dec. 13
Settlement date:	Dec. 20
Ratings:	Moody's: B3
	Standard & Poor's: CCC
Distribution:	Rule 144A and Regulation S for life
Price talk:	11% area at a discount
Marketing:	Roadshow

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