New Issue: Western Express sells $285 million 12½% five-year secured notes at 94.735 to yield 14%

By Paul A. Harris

St. Louis, April 9 - Western Express, Inc. priced a restructured $285 million issue of 12½% five-year senior secured notes (Caa1/B-/) at 94.735 to yield 14% on Friday, according to an informed source.

The deal priced in line with the price talk.

The maturity was decreased to five years from eight years. Call protection was decreased to three years from four years.

J.P. Morgan Securities Inc. ran the books. Credit Suisse Securities (USA) LLC was a co-manager.

Proceeds will be used to repay debt and for general corporate purposes, including funding capital expenditures in connection with a planned tractor fleet upgrade.

Western Express is a Nashville-based freight trucking business.

Issuer:	Western Express, Inc.
Face amount:	$285 million
Proceeds:	$268,995,000 (approximate)
Maturity:	April 15, 2015 (maturity decreased from 2018)
Security description:	Senior secured notes
Bookrunner:	J.P. Morgan Securities Inc.
Co-manager:	Credit Suisse Securities (USA) LLC
Coupon:	12½%
Price:	94.735
Yield:	14%
Spread:	1,133 bps
Call features:	Make-whole call at Treasuries plus 50 bps until April 15, 2013, then callable at 106.25, par on and after April 15, 2014 (call protection decreased from four years)
Equity clawback:	35% at 112.50 until April 15, 2013
Change-of-control put:	101%
Trade date:	April 9
Settlement date:	April 16
Ratings:	Moody's: Caa1
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S for life
Price talk:	12½% coupon at approximately 94.7 to yield 14%

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