New Issue: Albertsons prices upsized $600 million tap of 3½% notes due 2029 at 99 to yield 3.64%

By Paul A. Harris

Portland, Ore., Dec. 2 – Albertsons Cos., Inc. priced an upsized $600 million add-on to Albertsons Cos., Inc., Safeway Inc., New Albertsons LP and Albertson's LLC’s 3½% senior notes due March 15, 2029 (B1/BB-) at 99 to yield 3.64% in a Wednesday drive-by, according to market sources.

The deal was upsized from $500 million.

The price came at the rich end of price talk in the 98.75 area. Initial talk was 98.5 to 99.

BofA Securities Inc. was at the left of a syndicate of bookrunners that also included Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, BMO Capital Markets Corp., MUFG, PNC Capital Markets LLC, TD Securities (USA) LLC and U.S. Bancorp Investments Inc.

The Boise, Idaho-based grocery company plans to use the proceeds to partially redeem $700 million of its outstanding notes due in 2025. The additional proceeds resulting from the $100 million upsizing of the deal will also be applied to the redemption of the 2025 notes.

Issuers:	Albertsons Cos., Inc., Safeway Inc., New Albertsons LP and Albertson’s LLC
Amount:	$600 million, increased from $500 million
Maturity:	March 15, 2029
Security description:	Add-on to 3½% senior notes due March 15, 2029
Bookrunners:	BofA Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, BMO Capital Markets Corp., MUFG, PNC Capital Markets LLC, TD Securities (USA) LLC and U.S. Bancorp Investments Inc.
Coupon:	3½%
Price:	99
Yield:	3.64%
Spread:	283 bps
First call:	Sept. 15, 2023 at 101.75
Trade date:	Dec. 2
Settlement date:	Dec. 22
Ratings:	Moody's: B1
	S&P: BB-
Distribution:	Rule 144A and Regulation S for life
Price talk:	98.75 area
Marketing:	Drive-by
Original issue:	$750 million priced in August 2020
Fungibility:	Add-on notes will immediately become fungible with the original notes
Total issue size:	$1.35 billion

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