Published on 12/2/2020 in the Prospect News High Yield Daily.
New Issue: Albertsons prices upsized $600 million tap of 3˝% notes due 2029 at 99 to yield 3.64%
By Paul A. Harris
Portland, Ore., Dec. 2 – Albertsons Cos., Inc. priced an upsized $600 million add-on to Albertsons Cos., Inc., Safeway Inc., New Albertsons LP and Albertson's LLC’s 3˝% senior notes due March 15, 2029 (B1/BB-) at 99 to yield 3.64% in a Wednesday drive-by, according to market sources.
The deal was upsized from $500 million.
The price came at the rich end of price talk in the 98.75 area. Initial talk was 98.5 to 99.
BofA Securities Inc. was at the left of a syndicate of bookrunners that also included 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 LLC, BMO Capital Markets Corp., MUFG, PNC Capital Markets LLC, TD Securities (USA) LLC and U.S. Bancorp Investments Inc.
The Boise, Idaho-based grocery company plans to use the proceeds to partially redeem $700 million of its outstanding notes due in 2025. The additional proceeds resulting from the $100 million upsizing of the deal will also be applied to the redemption of the 2025 notes.
Issuers: | Albertsons Cos., Inc., Safeway Inc., New Albertsons LP and Albertson’s LLC
|
Amount: | $600 million, increased from $500 million
|
Maturity: | March 15, 2029
|
Security description: | Add-on to 3˝% senior notes due March 15, 2029
|
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 LLC, BMO Capital Markets Corp., MUFG, PNC Capital Markets LLC, TD Securities (USA) LLC and U.S. Bancorp Investments Inc.
|
Coupon: | 3˝%
|
Price: | 99
|
Yield: | 3.64%
|
Spread: | 283 bps
|
First call: | Sept. 15, 2023 at 101.75
|
Trade date: | Dec. 2
|
Settlement date: | Dec. 22
|
Ratings: | Moody's: B1
|
| S&P: BB-
|
Distribution: | Rule 144A and Regulation S for life
|
Price talk: | 98.75 area
|
Marketing: | Drive-by
|
Original issue: | $750 million priced in August 2020
|
Fungibility: | Add-on notes will immediately become fungible with the original notes
|
Total issue size: | $1.35 billion
|
|
© 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.