Published on 1/22/2020 in the Prospect News High Yield Daily.
New Issue: Albertsons prices $2.35 billion of notes in three tranches
By Paul A. Harris
Portland, Ore., Jan. 22 – Albertsons Cos. Inc. priced $2.35 billion of senior notes (B2/BB-) in three tranches on Wednesday, according to a syndicate source.
A $750 million tranche three-year notes priced at par to yield 3½%, at the tight end of the 3½% to 3¾% yield talk.
A $600 million add-on to the 4 5/8% senior notes due Jan. 15, 2027 priced at 101. The issue price came in the middle of price talk in the 101 area.
A $1 billion tranche of 10-year notes priced at par to yield 4 7/8%, at the tight end of the 4 7/8% to 5 1/8% price talk.
Bookrunners were 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.
The Boise-based grocery retailer plans to use the proceeds, along with cash on hand, to pay off its term loan facility.
| Issuers: | Albertsons Co., Inc., Safeway Inc., New Albertsons LP and Albertson’s LLC
|
| Amount: | $2.35 billion
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| Bookrunners: | 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.
|
| Co-managers: | PNC Capital Markets LLC, MUFG, BMO Capital Markets Corp. and SunTrust Robinson Humphrey Inc.
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| Trade date: | Jan. 22
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| Settlement date: | Feb. 5
|
| Ratings: | Moody's: B2
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Three-year notes
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| Amount: | $750 million
|
| Issue: | Notes
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| Maturity: | Feb. 15, 2023
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| Coupon: | 3½%
|
| Price: | Par
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| Yield: | 3½%
|
| Call protection: | Callable at par two months prior to maturity, otherwise non-callable
|
| Price talk: | 3½% to 3¾%
|
|
|
| Add-on due 2027
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| Amount: | $600 million add-on
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| Issue: | Senior notes
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| Maturity: | Jan. 15, 2027
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| Coupon: | 4 5/8%
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| Price: | 101
|
| Yield: | 4.43%
|
| First call date: | Jan. 15, 2023
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| Price talk: | 101
|
|
|
| New 10-year notes
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| Amount: | $1 billion
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| Issue: | Notes
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| Maturity: | Feb. 15, 2030
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| Coupon: | 4 7/8%
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| Price: | Par
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| Yield: | 4 7/8%
|
| First call date: | Feb. 15, 2025
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| Price talk: | 4 7/8% to 5 1/8%
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