Banc of America Securities Leads $450 Million High-Yield Financing for Stater Bros

Business Wire, August 12, 1999

RIVERSIDE, Calif.--(BUSINESS WIRE)--

Banc of America Securities today announced the successful closure of a $450 million Rule 144A transaction and a $75 million credit facility for Stater Bros. Holdings Inc., a privately owned Colton, Calif.-based supermarket chain.

In addition, Bank of America's Southern California Consumer and Commercial Banking Group provided a new $75 million senior credit facility.

In its largest sole lead-managed transaction to date, Banc of America Securities LLC (BAS) served as sole underwriter on the 10 3/4 percent Senior Notes due 2006 and sole dealer-manager on the tender offer related to substantially all of the company's $165 million of 11 percent Senior Notes due 2001 and all of its $100 million of 9 percent Senior Subordinated Notes due 2004.

In 1997, BAS served as sole manager on Stater Bros.' offering of $100 million of 9 percent Senior Subordinated Notes due 2004 and as solicitation agent on a consent solicitation for holders of its 11 percent Senior Notes due 2001.

"We priced this deal into a gale wind in the high-yield market -- easily the toughest week of the year, with seven deals cancelled and several others restructured," said Thomas G. White, head of global fixed income at BAS. "We were fortunate to have a strong client with a compelling story to tell.

"The deals brought a number of BAS capabilities to bear -- liability management advice, high-yield finance and a distribution effort that attracted 57 investors and a very strong book."

Stater Bros. is the largest independently owned supermarket chain in Southern California. The company currently operates 112 supermarkets in the counties of San Bernardino, Riverside, Los Angeles, Orange and Kern. As of Sept. 1, 1999, the company will operate 155 supermarkets in the counties of San Bernardino, Riverside, Los Angeles, Orange, Kern and San Diego.

Stater Bros. has been a client of Bank of America and its predecessor banks since the company's founding in 1936.

"The magnitude of this deal underscores Bank of America's commitment to funding growth opportunities for Southern California businesses," said Liam E. McGee, president, Bank of America, Southern California. "Most banks do not have the capability to finance a deal of this size. And we were able to close this transaction in only four weeks."

Banc of America Securities LLC, a subsidiary of Bank of America Corporation (NYSE:BAC), is a full-service investment bank and brokerage firm. With principal offices in San Francisco, Chicago, New York City and Charlotte, N.C., BAS employs more than 4,000 associates in offices around the country, and with affiliates, offers capabilities worldwide.

Bank of America, with $614 billion in total assets, is the largest bank in the United States with full-service consumer and commercial operations in 21 states and the District of Columbia. Bank of America provides financial products and services to 30 million households and 2 million business, as well as international corporate financial services for transactions in 190 countries.

Bank of America stock (BAC) is listed on the New York, Pacific and London stock exchanges, and certain shares are listed on the Tokyo Stock Exchange.