New Issue: Albertsons prices upsized $750 million 5 7/8% 8.5-year notes at par

By Paul A. Harris

Portland, Ore., Aug. 1 – Albertsons Cos., Inc. priced an upsized $750 million issue of 8.5-year senior guaranteed notes (B3/BB-) at par to yield 5 7/8% in a quick-to-market Thursday trade, according to a syndicate source.

The issue size increased from $500 million.

The yield printed at the tight end of the 5 7/8% to 6 1/8% yield talk.

BofA Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC and MUFG were the joint bookrunners.

The Boise, Idaho-based food and drug retailer plans to use the proceeds to pay down its term loan.

Issuers:	Albertsons Cos., Inc., Safeway Inc., New Albertsons LP and Albertson’s LLC
Amount:	$750 million, increased from $500 million
Maturity:	Feb. 15, 2028
Securities:	Senior guaranteed notes
Bookrunners:	BofA Securities Inc., Credit Suisse Securities (USA) Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC and MUFG
Co-managers:	PNC Capital Markets LLC, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc.
Coupon:	5 7/8%
Price:	Par
Yield:	5 7/8%
Spread:	404 bps
First call date:	Aug. 15, 2022
Trade date:	Aug. 1
Settlement date:	Aug. 15
Ratings:	Moody's: B3
	S&P: BB-
Distribution:	Rule 144A for life and Regulation S
Price talk:	5 7/8% to 6 1/8%
Marketing:	Quick to market

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