SuperValu extends ABL revolver with eye toward prepaying 8% notes

By Angela McDaniels

Tacoma, Wash., Sept. 30 – SuperValu Inc. amended its $1 billion asset-based revolving credit facility to extend the maturity date to Sept. 30, 2019 from Feb. 21, 2019, according to a company news release.

The amendment also added a springing maturity provision that would accelerate the maturity to 90 days prior to the scheduled maturity date of the company’s $1.5 billion senior secured term loan if the term loan has not been repaid by that date.

The company said that by extending the maturity of the ABL revolver to at least six months later than the maturity date of the term loan, it now has greater flexibility to prepay its 8% senior notes due May 2016 with proceeds of the ABL revolver.

Wells Fargo, U.S. Bank, Goldman Sachs, Credit Suisse, Morgan Stanley, Barclays, Rabobank and Bank of America Merrill Lynch acted as joint lead arrangers and joint bookrunners on the amendment.

The revolver is secured by the company’s inventory, credit card, wholesale trade, pharmacy and certain other receivables, prescription files and related assets.

SuperValu is a Eden Prairie, Minn.-based grocery wholesaler and retailer.

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