BOISE, ID - With a plan to pay back accrued and unpaid interest due 2022, Albertsons Companies, LLC has announced the pricing of $1.25 billion in aggregate principal amount of new 6.625% senior notes.
Expected to close on or about May 31, 2016, the senior notes would be due 2024. The deal is, however, still subject to customary closing conditions.
According to a press release, the company plans to use any net proceeds from the $1.25 billion offering for the following:
- Pay the redemption price, as well as accrued and unpaid interest, in connection with the redemption of all of the outstanding 7.750% senior secured notes due 2022 co-issued by Alberstons Companies and Safeway
- Repay certain amounts outstanding under its existing term loan facility
- Pay fees and expenses related to the Redemption and the issuance of the senior notes
Albertsons Companies and its subsidiaries, Safeway Inc., New Albertson's, Inc., and Albertson's LLC, will be co-issuers of the offering, according to the release.
Once the outstanding 7.750% senior secured notes are redeemed, the collateral currently securing the Safeway Notes, plus the guaranties of the Safeway Notes by Albertsons Company and its subsidiaries, will be released.
The security notes for sale will be offered in the U.S. to those qualified, as well as to those outside the U.S. that are in accordance with Regulation S under the Securities Act.
What other financial moves does the retailer have in store? Keep checking in with AndNowUKnow as we continue to keep our finger on the pulse of the buy-side and supply-side of the produce industry.
