By Paul A. Harris
Portland, Ore., Aug. 4 – Albertsons Cos., LLC priced an upsized $1.25 billion issue of senior notes due March 15, 2025 (B3/B+) at par to yield 5¾% on Thursday, according to a market source.
The issue size was increased from $750 million.
The yield printed on top of yield talk.
BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Goldman Sachs & Co., Deutsche Bank Securities Inc. and Barclays managed the sale.
The Boise, Idaho-based supermarket operator plans to use the proceeds to repay all borrowings outstanding on its senior secured asset-based loan facility and $500 million under its existing term loan facility, with any remaining proceeds for general corporate purposes, which may include capital expenditures, working capital and potential acquisitions and strategic transactions.
The co-issuers include subsidiaries Safeway Inc., New Albertson's, Inc. and Albertson's LLC.
| Issuer: | Albertsons Cos., LLC
|
| Amount: | $1.25 billion, increased from $750 million
|
| Maturity: | March 15, 2025
|
| Securities: | Senior notes
|
| Managers: | BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Goldman Sachs & Co., Deutsche Bank Securities Inc., Barclays
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Call protection: | Three years
|
| Trade date: | Aug. 4
|
| Settlement date: | Aug. 9
|
| Ratings: | Moody's: B3
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 5¾% area
|
| Marketing: | Quick to market
|
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