New Issue: Wild Oats $100 million cash-to-zero convertible yields 3.25%, up 40%

Nashville, May 26 - Wild Oats Markets Inc. sold $100 million 30-year convertible cash-to-zero notes at par for a yield to maturity of 3.25% with a 40% initial conversion premium via joint bookrunners JPMorgan Securities and Banc of America Securities. The issue will pay a cash coupon for seven years and then become a zero-coupon accreting bond.

The Rule144A deal priced at the cheap end of price talk for a 2.75% to 3.25% coupon and a 40% to 45% initial conversion premium.

The Boulder, Colo.-based health food grocer plans to use proceeds to accelerate its growth plans and for general corporate purposes, which may include allocating up to 25% of proceeds to purchase stock either concurrent with the offering or from time to time.

Terms of the deal are:

Issuer:	Wild Oats Markets Inc.
Issue:	Convertible senior debentures
Bookrunners:	JPMorgan Securities and Banc of America Securities
Amount:	$100 million
Greenshoe:	$15 million
Maturity:	May 15, 2034
Coupon:	3.25% for 7 years, then 0%
Price:	Par
Yield to maturity:	3.25%
Conversion premium:	40%
Conversion price:	$17.70
Conversion ratio:	56.5099
Contingent conversion:	130%
Contingent payment:	125%
Call:	Non-callable for 7 years
Put:	In years 7, 10 and 20
Price talk:	2.75-3.25%, up 40-45%
Pricing date:	May 25, after the close
Settlement date:	June 1
Distribution:	Rule 144A

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