Bear Stearns and CIBC World Markets have landed the lead roles for a $540 million high-yield debt package for Willis Stein & Partners, backing the purchase of Roundy's, a food wholesale and retail company. The leads will go to Roundy's existing lenders in Milwaukee on Monday, said one banker, and the institutional launch will be in mid-May.
BANK ONE is lead on the current Roundy's credit and there is a pretty solid bank group, the banker added. The purchase price is approximately $650-750 million, said a banker. The bank deal will be $340 million, consisting of a $90 million revolver and a $250 million "B" term loan. There will also be an approximately $200 million high-yield bond offering. Pricing will be ratings dependent, with a Ba3/BB- expected, she said, with the leverage multiple approximately 4 times. This multiple is typical for the sector, said a banker, who added the business is not very cyclical. Regulator and shareholder approval for the transaction is expected in May. Calls to Willis Stein were referred to spokeswoman Ann Travers. She could not return comment by press time. Officials at the banks either did not return calls or declined comment.