Albertsons sets talk in $2.35 billion three-part notes offering; pricing set for Wednesday

By Paul A. Harris

Portland, Ore., Jan. 22 – Albertsons Cos. Inc. set price talk in its $2.35 billion three-part offering of senior notes (B2/BB-), according to a syndicate source.

A $750 million tranche of new three-year notes is talked at 3½% to 3¾%.

A $600 million add-on to the 4 5/8% senior notes due Jan. 15, 2027, which is non-callable before Jan. 15, 2023, is talked in the 101 area.

A $1 billion tranche of new 10-year notes, which come with five years of call protection, is talked at 4 7/8% to 5 1/8%.

Books close at 1 p.m. ET on Wednesday.

BofA Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., Barclays, RBC Capital Markets Corp. and U.S. Bancorp Investments Inc. are the joint bookrunners in the Rule 144A and Regulation S for life deal.

PNC Capital Markets LLC, MUFG, BMO Capital Markets Corp. and SunTrust Robinson Humphrey Inc. are the co-managers.

The co-issuers are Safeway Inc., New Albertsons LP and Albertson’s LLC.

The Boise-based grocery retailer plans to use the proceeds, along with cash on hand, to pay off its term loan facility.

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