By Angela McDaniels
Tacoma, Wash., June 5 – Albertsons Cos., LLC subsidiaries New Albertson's, Inc. and Safeway Inc. began tender offers to purchase up to a total of $500 million principal amount of debt securities, according to a company news release.
The notes eligible for the offers are noted in the table below. They are listed in order of acceptance priority level.
Each total consideration includes an early tender premium of $30.00 per $1,000 principal amount of notes tendered by the early tender date, 5 p.m. ET on June 16.
Holders will also receive accrued interest up to but excluding the applicable settlement date.
The tender offers will end at 11:59 p.m. ET on July 5.
The settlement date is expected to be June 22 for notes tendered by the early tender date and July 6 for notes tendered after the early tender date but prior to the expiration.
If the tender offers are not fully subscribed as of the early tender date and the offerors elect to have an early settlement date, holders who tender securities after the early tender date may be subject to proration, whereas holders who tender securities at or prior to the early tender date will not be subject to proration.
In addition, if the aggregate principal amount of debt securities of all series tendered in the tender offers at or prior to the early tender date exceeds the tender cap amount and the offerors elect to have an early settlement date, securities tendered after the early tender date will not be eligible for purchase regardless of the acceptance priority level of such debt securities, unless the tender cap amount is increased.
However, if the offerors do not elect to have an early settlement date and the applicable tender offer is fully subscribed, or the aggregate principal amount of debt securities of all series tendered at or prior to the expiration date exceeds the tender cap amount, as applicable, all holders who tendered securities will be subject to proration, subject to the application of the acceptance priority levels.
The tender offers are not subject to any minimum tender condition, but they are subject to financing, including a potential offering of senior guaranteed notes.
The dealer manager is BofA Merrill Lynch (980 388-3646 or 888 292-0070). The information agent and tender agent is Global Bondholder Services Corp. (212 430-3774 or 866-794-2200).
Albertsons is a Boise, Idaho-based food and drug retailer.
Albertsons tender offer
| Issuer | Notes | Amount outstanding | Total consideration
|
| Safeway | 6.35% notes due 2017 | $100 million | $1,007.50
|
| New Albertson’s | 8.7% senior debentures due 2030 | $225 million | $1,047.50
|
| New Albertson’s | 8% senior debentures due 2031 | $400 million | $1,022.50
|
| New Albertson’s | 6 | 5/8% medium-term notes due 2028 | $150 million | $947.50
|
| New Albertson’s | 7.45% senior debentures due 2029 | $650 million | $1,010.00
|
| New Albertson’s | 7¾% debentures due 2026 | $200 million | $1,028.75
|
| Safeway | 7¼% debentures due 2031 | $600 million | $1,005.00
|
| Safeway | 7.45% senior debentures due 2027 | $150 million | $1,025.00
|
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