Delhaize accepts tenders for $447.79 million 6.5%, 4.125% notes so far

By Marisa Wong

Madison, Wis., Feb. 10 – Delhaize Group announced that holders had tendered $277,738,000 of its $450 million outstanding 6.5% senior notes due 2017 and $170,051,000 of its $300 million outstanding 4.125% senior notes due 2019 as of the early tender date of 5 p.m. ET on Feb. 9.

All of the tendered notes have been accepted for purchase, according to a press release.

As previously announced, Delhaize launched a cash tender offer for any and all of the 6.5% notes and a maximum tender amount of the 4.125% notes, with an overall offer cap of $450 million.

The maximum tender amount for the 4.125% notes has been set at $172,262,000, the release noted. The cap is equal to $450 million less the amount of tendered 6.5% notes accepted.

Pricing

For each $1,000 principal amount, the company is offering a tender offer consideration of $1,116.62 for the 6.5% notes and $1,040.65 for the 4.125% notes. The payment for the 4.125% notes includes an early tender premium of $30.00 that will be payable to those who tendered their holdings prior to 5 p.m. ET on Feb. 9.

The purchase price for the 6.5% notes was set using a spread of 80 basis points over the 0.625% Treasury due Dec. 31, 2016. There is no early tender premium for these notes.

For the 4.125% notes, the price was set using a spread of 85 bps over the 1.625% Treasury due Dec. 31, 2019.

Pricing for both series of notes was set using the bid-side price of the benchmark Treasury as of 2 p.m. ET on Feb. 9.

For both series of notes, Delhaize will pay accrued interest up to but excluding the settlement date.

Deadlines

The tender for the 6.5% notes ended at 5 p.m. ET on Feb. 9.

The tender for the 4.125% notes will end at 11:59 p.m. ET on Feb. 24. The early tender deadline for holders of these bonds was 5 p.m. ET on Feb. 9.

The tenders are subject to conditions.

Delhaize previously said it is carrying out the tender to manage its debt and reduce interest expense.

J.P. Morgan Securities LLC (800 834-4666 or 212 834-3424) is dealer manager. D.F. King & Co., Inc. (800 591-8269, 212 269-5550 for banks and brokers or delhaize@dfking.com) is information agent and tender agent.

Delhaize is a Brussels-based food retailer. It launched the offer on Jan. 27.

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