SUPERVALU Completes Refinancing of Senior Secured Term Loan
June 08 2017 - 5:10PM
Business Wire
SUPERVALU INC. (NYSE: SVU) today announced it has successfully
completed the refinancing of its existing senior secured term loan
credit agreement. The new seven-year senior secured term loan
credit agreement provides for an initial term loan facility of $525
million, which was used to refinance outstanding loans under the
prior term loan credit agreement, and a delayed draw term loan
facility of $315 million which is expected to be drawn down in full
for the purpose of consummating the acquisition of Unified Grocers,
Inc. The acquisition is currently expected to close in late June,
and remains subject to customary closing conditions.
Borrowings under this new term loan credit agreement will bear
interest at the rate of LIBOR plus 3.50 percent with a floor on
LIBOR set at 1.00 percent, reflecting a 1.00 percent rate reduction
compared to the prior term loan credit agreement for LIBOR based
loans. The new term loan credit agreement will mature on June 8,
2024. However, if the Company has not repaid its 6.75 percent
senior notes due June 1, 2021 or its 7.75 percent senior notes due
November 15, 2022 by the date that is 91 days prior to the
respective maturity date of such notes, the term loan will mature
on the date that is 91 days prior to the maturity date of such
notes. In addition, the covenants in the new term loan credit
agreement were modified to give the Company additional strategic
and operational flexibility.
Goldman Sachs Bank USA, RBC Capital Markets, Barclays, Credit
Suisse, BMO Capital Markets and Citigroup acted as joint lead
book-runners and joint lead arrangers while Wells Fargo Securities,
U.S. Bank N.A., Rabobank and Natixis Securities acted as
co-managers on the refinancing.
About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and
retailers in the U.S. with annual sales of approximately $12
billion. SUPERVALU serves customers across the United States
through a network of 2,363 stores composed of 1,902 stores operated
by wholesale customers serviced primarily by the Company’s food
distribution business and 217 traditional retail grocery stores
operated under five retail banners in six geographic regions (store
counts as of February 25, 2017). Headquartered in Minnesota,
SUPERVALU has approximately 29,000 employees. For more information
about SUPERVALU visit www.supervalu.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170608006353/en/
SUPERVALU INC.Investor
Contact:Steve Bloomquist,
952-828-4144steve.j.bloomquist@supervalu.comorMedia Contact:Jeff Swanson,
952-903-1645jeffrey.s.swanson@supervalu.com
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