Albertsons’ Safeway, New Albertsons units tender for seven note series

By Wendy Van Sickle

Columbus, Ohio, May 6 – Albertsons Cos., Inc. announced capped tender offers for seven series of notes issued by its Safeway Inc. and New Albertsons LP subsidiaries, according to a company news release.

The following notes are covered by the offers with the total considerations listed per each $1,000 principal amount:

• Up to $30 million of the $289,119,000 of 7¼% debentures due 2031 issued by Safeway for a total consideration of $953.75;

• Up to $15 million of the $127,193,000 of 7.45% debentures due 2027 issued by Safeway for a total consideration of $966.25;

• Up to $15 million of the $117,572,000 of 6 5/8% medium-term notes due 2028 issued by New Albertsons for a total consideration of $875;

• Up to $60 million of the $542,561,000 of 7.45% senior debentures due 2029 issued by New Albertsons for a total consideration of $957.50;

• Up to $20 million of the $157,696,000 of 7¾% debentures due 2026 issued by New Albertsons for a total consideration of $961.25;

• Up to $40 million of the $384.99 million of 8% senior debentures due 2031 issued by New Albertsons for a total consideration of $961.25; and

• Up to $20 million of the $197,751,000 of 8.7% senior debentures due 2030 issued by New Albertsons for a total consideration of $1,000.

In each case, the total consideration includes an early tender premium of $30 per $1,000 principal amount for notes tendered by the early deadline, 5 p.m. ET on May 17.

The offers will expire at 11:59 p.m. ET on June 3.

Holders will also receive accrued interest up to but excluding the settlement date, which will be May 21 for early tenders and June 5 for tenders received and accepted after the early deadline.

The offers are subject to some conditions. Tenders accepted for purchase may be prorated in the event that any series cap is exceeded.

BofA Merrill Lynch (888 292-0070 or 980 388-4813) is the dealer manager.

Global Bondholder Services Corp. (866 470-3900 or 212 430-3774) is the tender and information agent.

Albertsons is a food and drug retailer based in Boise, Idaho.

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