Grand Union Co. yesterday said it will issue $800 million of notes and may sweeten its buyback offer for some 13% notes, the company announced yesterday.

"It's doable, but it's definitely a lot of cash to raise for one highly leveraged company, which it is," said Steven Ruggiero, a vice president at Donaldson, Lufkin & Jenrette Securities Corp.'s high-yield research group.

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