Delhaize wraps tenders for $172.26 million 4.125% notes in capped offer

By Susanna Moon

Chicago, Feb. 25 – Delhaize Group said holders had tendered $172,262,000 of its 4.125% senior notes due 2019 in the offer that ended at 11:59 p.m. ET on Feb. 24.

The company was tendering for $172,262,000 of the notes and accepted for purchase all of the tendered notes, according to a press release.

As previously announced, Delhaize tendered for any and all of its $450 million outstanding 6.5% senior notes due 2017 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 was equal to $450 million less the amount of tendered 6.5% notes accepted.

Holders had tendered $277,738,000 of its 6.5% notes and $170,051,000 of its $300 million outstanding 4.125% notes by 5 p.m. ET on Feb. 9, the early tender date.

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

The total purchase price for each $1,000 principal amount was $1,116.62 for the 6.5% notes and $1,040.65 for the 4.125% notes. The payment for the 4.125% notes included an early tender premium of $30.00 per $1,000 of notes tendered by the early deadline.

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 was no early tender premium for these notes.

For the 4.125% notes, pricing 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.

Delhaize previously said the tender offers will help 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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