Albertsons posts early tenders for $1.05 billion of eight note series

By Susanna Moon

Chicago, June 20 – Albertsons Cos., LLC gave another update in the tender for up to $500 million principal amount of notes being made by subsidiaries New Albertson's, Inc. and Safeway Inc.

Holders have tendered $1,052,000,000 principal amount of notes as of 5 p.m. ET on June 19, the extended early tender date, according to a company update on Tuesday.

That compares with tenders for about $702.3 million of the eight series of notes as of 5 p.m. ET on June 16, the original early tender date.

The breakdown for the latest tally is as follows, compared with the previous early tender count, with a purchase price for each $1,000 principal amount and the notes listed in order of priority acceptance levels:

• $24,711,000, up from $24,705,000, of Safeway’s $100 million 6.35% notes due 2017 with a total purchase price of $1,007.50 and base price of $977.50;

• $182,815,000, up from $108,569,000, of New Albertson’s $225 million 8.7% senior debentures due 2030 with a total purchase price of $1,047.50 and base price of $1,017.50;

• $330.19 million, up from $160,084,000, of New Albertson’s $400 million 8% senior debentures due 2031 with a total purchase price of $1,022.50 and base price of $992.50;

• $141.18 million, up from $43,852,000, of New Albertson’s $150 million 6 5/8% medium-term notes due 2028 with a total purchase price of $947.50 and base price of $917.50;

• $180,546,000, up from $177,463,000, of New Albertson’s $650 million 7.45% senior debentures due 2029 with a total purchase price of $1,010.00 and base price of $980.00;

• $62,355,000, up from $58,137,000, of New Albertson’s $200 million 7¾% debentures due 2026 with a total purchase price of $1,028.75 and base price of $998.75;

• $108.55 million, up from $107,557,000, of Safeway’s $600 million 7¼% debentures due 2031 with a total purchase price of $1,005.00 and base price of $975.00; and

• $22,076,000, up from $21,925,000, of Safeway’s $150 million 7.45% senior debentures due 2027 with a total purchase price of $1,025.00 and base price of $995.00.

As announced June 5, the total purchase price includes an early tender premium of $30.00 for each $1,000 principal amount of notes tendered by the early tender deadline, which was extended until 5 p.m. ET on June 19.

The tender offers will continue until 11:59 p.m. ET on July 5. Tendered notes may no longer be withdrawn.

Holders will also receive accrued interest up to but excluding the settlement date.

The settlement date is expected to be June 22 for notes tendered by the early tender date and July 6 for any remaining tenders.

The tender offers do not contain a minimum tender condition but do require closing of financing, including a possible issue 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.

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