VB Assists STATER BROS. with $525 Million Refinancing
Stater Bros. to Save $16 to $18 Million Annually with VB Assisted Refinancing
Varner & Brandt assisted Stater Bros. Holdings Inc. ("Stater Bros.") with the refinancing of its $525 million notes due June 2012. The transaction consisted of a private offering (the "Offering") of $255 million aggregate principal amount of 7 3/8% Senior Notes due 2018 (the "Notes"). In addition to the $255 million bond issue, Stater Bros. de-levered the company by payment $132 million in cash and securing a $145 million loan with a four-year term and an interest rate 2.5 percentage points above the London Interbank Offered Rate. The transaction also includes Stater Bros. extending a $100 million line of credit. In sum, Varner & Brandt helped Stater Bros. reduce its overall debt load by about $125 million, saving Stater Bros. about $16 million to $18 million in annual interest payments.
Varner & Brandt previously worked with Stater Bros. on the original issuance of the $525 million in notes which were utilized partly to finance a their new headquarters and distribution center at the former Norton Air Force Base. Stater Bros. has an additional $285 million in outstanding notes due in 2015, a transaction on which Varner & Brandt also assisted.
