Albertson’s trims bonds to $1.38 billion, ups loan by $250 million

By Paul A. Harris

Portland, Ore., Oct. 6 – Albertson’s Holdings LLC downsized its offering of eight-year second-lien senior secured notes (B2/CCC+) by $250 million, to $1,375,000,000 from $1,625,000,000, and shifted the proceeds to a proposed $250 million tack-on term loan B4, according to a market source.

As reported, the roadshow for the notes offering is scheduled to wrap up on Tuesday.

BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Barclays and Deutsche Bank Securities Inc. are joint bookrunners for the Rule 144A and Regulation S for life offering.

U.S. Bancorp Investments Inc. and SunTrust Robinson Humphrey Inc. are the co-managers.

The notes become callable after three years at par plus 75% of the coupon and feature a three-year 40% equity clawback.

Proceeds will be used to help fund the acquisition of Pleasanton, Calif.-based food and drug retailer Safeway, Inc.

Albertson’s is a Boise, Idaho-based grocery company.

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