Albertsons accepts tenders for $437 million notes from seven series

By Marisa Wong

Morgantown, W.Va., June 7 – Albertsons Cos., Inc. announced the final results of its capped tender offers for seven series of notes issued by its Safeway Inc. and New Albertsons LP subsidiaries.

As of 11:59 p.m. ET on June 6, the expiration of the offers, holders had tendered the following:

• $27.02 million of the $289,119,000 of 7¼% debentures due 2031 issued by Safeway, including $749,000 of notes tendered after the early tender date at 5 p.m. ET on May 22, for a total consideration of $953.75 per $1,000 principal amount. The series is subject to a $30 million tender cap;

• $7,115,000 of the $127,193,000 of 7.45% debentures due 2027 issued by Safeway, including $195,000 of notes tendered after the early tender date, for a total consideration of $966.25. The series is subject to a $15 million tender cap;

• $60.98 million of the $117,572,000 of 6 5/8% medium-term notes due 2028 issued by New Albertsons, including $34,000 of notes tendered after the early tender date, for a total consideration of $875.00. The series is subject to a tender cap of $61,946,000, increased from $15 million originally;

• $179,971,000 of the $542,561,000 of 7.45% senior debentures due 2029 issued by New Albertsons, including $69,000 of notes tendered after the early tender date, for a total consideration of $957.50. The series is subject to a tender cap of $180,902,000, raised from $60 million originally;

• $42,276,000 of the $157,696,000 of 7¾% debentures due 2026 issued by New Albertsons, including $106,000 of notes tendered after the early tender date, for a total consideration of $961.25. The series is subject to a tender cap of $43.17 million, up from $20 million originally;

• $79,122,000 of the $384.99 million of 8% senior debentures due 2031 issued by New Albertsons, including $80,000 of notes tendered after the early tender date, for a total consideration of $961.25. The series is subject to a tender cap of $80,042,000, increased from $40 million originally; and

• $40,504,000 of the $197,751,000 of 8.7% senior debentures due 2030 issued by New Albertsons, including $10,000 of notes tendered after the early tender date, for a total consideration of $1,000.00. The series is subject to a tender cap of $41,494,000, up from $20 million originally.

Albertsons will accept all of the notes tendered after the early tender date and expects to pay for those notes on June 10, according to a Friday press release.

In total, the company will pay $415,326,928.75, excluding interest, to purchase all of the securities tendered under the offers.

The total consideration includes an early tender payment of $30.00 per $1,000 principal amount of notes tendered by the early tender date. Holders tendering after the early tender date will only be eligible to receive the tender offer consideration, or the total consideration less the early tender payment.

The company will also pay accrued interest up to the settlement date, which was May 24 for the early tenders.

As previously reported, the early tender date had been extended from May 17 and the expiration date from June 3. The offers began on May 6.

BofA Securities Inc. (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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