Fleming to use about $12 million from asset sales to pay down term loan

By Sara Rosenberg

New York, Feb. 12 - Fleming Companies Inc. anticipates using net proceeds from asset sales of about $12 million to pay down its senior secured term loan balance.

The company announced on Wednesday that an agreement has been reached to sell three Food4Less facilities and two Rainbow Foods stores to Albertsons. The transaction is expected to be finalized within 60 days.

The Lewisville, Tex. distributor of consumable goods and supermarket operator also completed the previously announced sale of a Rainbow Foods store to an independent Sentry Foods operator.

Spartan Stores uses $40 million from asset sales to pay down bank debt

New York, Feb. 12 - Spartan Stores Inc. used the after-tax proceeds of $40 million from the sale of seven shopping centers to repay outstanding bank borrowings.

That paydown helped cut outstanding bank debt to $185.5 million on Jan. 4, compared to $286.5 million at March 30, 2002.

"We are making meaningful progress with our business plan and are pleased to have exceeded our debt repayment goals for fiscal 2003," said James B. Meyer, chairman, president, and chief executive officer, in a news release. "Indications point toward steady progress with our objectives in each business segment, despite unfavorable economic and competitive market conditions. In addition to our debt repayment, we also reduced our inventory balances while continuing to maintain our high customer service levels. These efforts have helped to significantly improve our operating cash flow. We expect to continue making significant inventory reductions during the next 12 to 15 month period."

Spartan Stores is a Grand Rapids, Mich. grocery retailer and grocery and convenience distributor.

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