S&P rates Albertsons notes B+

S&P said it assigned a B+ rating to Albertsons Cos. LLC's $750 million senior unsecured notes due 2025.

The recovery rating is 4, reflecting 30% to 50% expected default recovery.

The co-issuers of the notes include Albertsons and its subsidiaries, Safeway Inc., New Albertson's Inc. and Albertson's LLC.

The proceeds will be used to repay asset-based loan borrowings of about $240 million and also reduce the company's term loan B-6 due 2023, S&P said.

The transaction comes as Albertsons has simplified its capital structure through a series of refinancing transaction since the end of last year, the agency said.

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