New Issue: Albertsons sells $1.25 billion eight-year notes at par to yield 6 5/8%

By Paul A. Harris

Portland, Ore., May 25 – Albertsons Cos., LLC priced a $1.25 billion issue of eight-year notes (B3/B+) at par to yield 6 5/8% on Wednesday, according to a syndicate source.

The yield printed at the tight end of yield talk in the 6¾% area and inside of the earlier 6¾% to 7% guidance.

BofA Merrill Lynch was the left bookrunner. Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Goldman Sachs & Co., Deutsche Bank Securities Inc. and Barclays were the joint bookrunners.

The Boise, Idaho-based food and drug retailer plans to use the proceeds to repay some amounts outstanding under its existing term loan facility and to redeem 7¾% senior secured notes due 2022.

Issuers:	Albertsons Cos., LLC, Safeway Inc., New Albertson's, Inc. Albertson's LLC
Amount:	$1.25 billion
Maturity:	June 15, 2024
Securities:	Senior notes
Left bookrunner:	BofA Merrill Lynch
Joint bookrunners:	Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Goldman Sachs & Co., Deutsche Bank Securities Inc., Barclays
Co-managers:	Guggenheim, RBC Capital Markets, Wells Fargo Securities LLC, Drexel
Coupon:	6 5/8%
Price:	Par
Yield:	6 5/8%
Spread:	487 bps
Call protection:	Three years
Trade date:	May 25
Settlement date:	May 31
Ratings:	Moody's: B3
	S&P: B+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	6¾% area
Marketing:	Roadshow

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