Albertson's plans $2.05 billion credit facility for purchase of stores

By Sara Rosenberg

New York, Jan. 28 - Albertson's LLC expects to get a new $2.05 billion credit facility to help fund its acquisition of Albertsons, Acme, Jewel-Osco, Shaw's and Star Market stores from SuperValu Inc., according to an SC TO-T filed late Friday with the Securities and Exchange Commission.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Barclays are leading the debt.

The facility consists of a $1 billion revolver and a $1.05 billion term loan.

Under the agreement, Albertson's, through its parent company AB Acquisition LLC, is buying the 877 stores from SuperValu for $100 million in cash plus the assumption of about $3.2 billion in debt.

Closing is expected this quarter, subject to customary closing conditions and the completion of financing.

Albertson's is a food and drug retailer that is owned by New York-based Cerberus Capital Management.

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