Published on 8/11/2020 in the Prospect News High Yield Daily.
New Issue: Albertsons prices upsized $1.5 billion unsecured notes in two parts
By Paul A. Harris
Portland, Ore., Aug. 11 – Albertsons Cos., Inc. priced an upsized $1.5 billion of senior notes (B2/BB-) in two tranches on Tuesday, according to market sources.
The deal, which was upsized from $1.25 billion, included $750 million of 5.5-year notes that priced at par to yield 3¼%. The yield printed at the tight end of yield talk in the 3 3/8% area. Initial talk was in the mid 3% area.
The deal also included $750 million of 8.5-year notes that priced at par to yield 3½%, at the tight end of yield talk in the 3 5/8% area. Initial talk on the 8.5-year notes was in the high 3% area.
BofA Securities Inc. was on the left of a syndicate of bookrunners. Other bookrunners were Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, RBC Capital Markets Corp., BMO Capital Markets Corp., MUFG, PNC Capital Markets LLC and U.S. Bancorp Investments Inc.
The Boise, Idaho-based grocery company plans to use the proceeds to redeem its 6 5/8% senior notes due 2024.
| Issuer: | Albertsons Cos., Inc., Safeway Inc., New Albertsons LP and Albertson’s LLC
|
| Amount: | $1.5 billion, increased from $1.25 billion
|
| Securities: | Senior notes
|
| Bookrunners: | BofA Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, RBC Capital Markets Corp., BMO Capital Markets Corp., MUFG, PNC Capital Markets LLC and U.S. Bancorp Investments Inc.
|
| Trade date: | Aug. 11
|
| Settlement date: | Aug. 31
|
| Ratings: | Moody's: B2
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Drive-by
|
|
|
| 5.5-year notes
|
| Amount: | $750 million
|
| Maturity: | March 15, 2026
|
| Coupon: | 3¼%
|
| Price: | Par
|
| Yield: | 3¼%
|
| Spread: | 292 bps
|
| Call protection: | Two years
|
| Price talk: | 3 3/8% area
|
|
|
| 8.5-year notes
|
| Amount: | $750 million
|
| Maturity: | March 15, 2029
|
| Coupon: | 3½%
|
| Price: | Par
|
| Yield: | 3½%
|
| Spread: | 294 bps
|
| Call protection: | Three years
|
| Price talk: | 3 5/8% area
|
|
|
© 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.
