Albertson's launches $300 million term loan B-2 at Libor plus 375 bps

By Sara Rosenberg

New York, Sept. 10 - Albertson's LLC launched with its call on Tuesday a $300 million incremental senior secured covenant-light term loan B-2 due March 21, 2019 with price talk of Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

Included in the term loan is a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

The loan has the same call protection as the existing term loan, and that call protection expires on May 9, 2014, the source said.

Amortization is 1% per annum.

Commitments are due on Monday.

Closing and funding is targeted for October.

Citigroup Global Markets Inc., Bank of America Merrill Lynch and Goldman Sachs Bank USA are the lead arrangers and joint bookrunners on the deal.

Proceeds will be used to fund the acquisition of Lubbock, Texas-based United Supermarkets LLC.

In connection with this transaction, the company is seeking an amendment to its existing credit facility to allow for the acquisition and waive the 4 times total secured net leverage ratio, the source added.

Lenders are being offered a 25 bps consent fee.

Albertson's is an Idaho-based food and drug retailer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.