<p> Following Roundy’s $36 million purchase of Safeway’s Dominick’s stores, the company is now securing funds to finance the transaction in a $200 million senior secured second lien note offering due 2020.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"> Roundy’s intends to use the proceeds from the offering to prepay a portion of the term loan under its first lien credit facility and to fund its purchase of 11 Chicago area Dominick’s stores in a $36 million cash and lease assumption transaction, according to a press release. The deal also includes $10 million of net inventory. The Wisconsin-based supermarket chain plans to convert these stores to its Mariano’s banner.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">There will be a transition period of approximately one to two months at which time Roundy’s will take possession of the stores and convert them to Mariano’s. This conversion will nearly double Mariano’s store base supporting the strong continued growth prospects that exist for the Mariano’s banner.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">Roundy’s will amend its first lien credit agreement to increase financial flexibility by relating certain covenants. The Notes offering is contingent upon the effectiveness of the amendment to the first lien credit facility. However, the portions of the amendment that provide increased financial flexibility will not become effective until closing of the Chicago stores purchase if such purchase is not consummated prior to or concurrently with closing of the Notes offering.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">Most recently, the city of Chicago has formed a task force to find buyers for remaining Dominick’s stores and to ensure smooth transitions of the purchased Dominick’s locations.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://phx.corporate-ir.net/phoenix.zhtml?c=251227&p=irol-IRHome" target="_new"> Roundy’s</a></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">
