Delhaize sets pricing in tenders for up to $1.1 billion of securities

By Jennifer Chiou

New York, June 13 - Delhaize Group said that Delhaize America, Inc., its wholly owned subsidiary, announced pricing in its cash tender offer for up to $1.1 billion of its debt in a 6-K filing with the Securities and Exchange Commission.

For each $1,000 principal amount, Delhaize America will pay $1,085.70 for its $1.1 billion of 8 1/8% notes due 2011, $1,225.64 for its $855 million of 9% debentures due 2031 and $1,107.75 for its $126 million of 8.05% notes due 2027.

The payouts include a $40.00 early tender premium for those who tendered by the early deadline.

The company will also pay accrued interest to the settlement date.

The company calculated the payouts using the 4¾% Treasury due March, 2011 and a fixed spread of 50 basis points for the 8 1/8% notes, the 4½% Treasury due Feb. 15, 2036 and 170 bps for the 9% debentures and the 4½% Treasury due Feb. 15, 2036 and 170 bps for the 8.05% notes.

Pricing was fixed at 11 a.m. ET on June 12.

As of the early tender deadline at 5 p.m. ET on June 12, the company received tenders from holders of $1,810,426,000 total of the notes, including $1,049,556,000 of the 8 1/8% notes, $655.602 million of the 9% debentures and $105.268 million of the 8.05% notes.

Because the aggregate principal amount of the 8 1/8% notes and 9% debentures validly tendered exceeded the tender cap, Delhaize said it will not purchase any of the 8.05% notes in the offer. Any tendered 8.05% notes will be returned.

The offer expires at midnight ET on June 26.

The Brussels-based international food retailer said it will finance the offer with about $1.1 billion obtained through the private placement of two series of senior notes. The new issue is a condition of the tender.

Delhaize said it plans to offer euro-denominated senior notes due 2014 and dollar-denominated senior notes due 2017.

Remaining proceeds, if any, will be used for general corporate purposes.

Banc of America Securities LLC (866 475-9886 or call collect 704 386-3244 or 44 20 7174 4313) and Merrill Lynch & Co. (888 654-8637 or call collect 212 449-4914 or 44 20 7995 3715) are the dealer managers. Global Bondholder Services Corp. (call collect 212 430-3774 or 866 807-2200) is the information agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.