Roundy's downsizes junk deal to $175 million, cuts dividend to $400 million

By Paul A. Harris

St. Louis, Oct. 21 - Roundy's Inc. cut its high-yield bond offering to $175 million from $325 million, according to an informed source.

Roundy's subsequently reduced to $400 million from $550 million a proposed dividend payment to principal shareholder Willis Stein & Partners III, LP, which the bond proceeds will help fund.

The company now plans to price a $175 million offering of seven-year senior floating-rate notes (B3/B-) early this week.

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

A proposed $150 million tranche of eight-year subordinated notes has been altogether eliminated from the financing.

Roundy's is a Milwaukee-based wholesale food distributor and supermarket operator.

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