Kroger guides $500 million 10-year notes offering at Treasuries plus 130 bps area

By Aleesia Forni

Virginia Beach, Jan. 23 - Kroger Co. is planning to sell a $500 million offering of 10-year senior notes (Baa2/BBB/BBB) on Thursday, according to a syndicate source and a 424B5 filing with the Securities and Exchange Commission.

Initial guidance is set in the 130 basis points over Treasuries area.

Citigroup Global Markets Inc., RBC Capital Markets LLC and RBS Securities Inc. are the bookrunners.

Proceeds will be used to refinance long-term debt that matured on Jan. 15 and for general corporate purposes.

The Cincinnati-based grocery retailer was last in the U.S. bond market with $2 billion of senior notes priced in four tranches on Dec. 16.

The deal included $500 million of three-year floating-rate notes sold to yield Libor plus 53 basis points and $300 million of 1.2% notes due 2016 priced with a spread of Treasuries plus 55 bps.

A $500 million issue of 2.3% notes due 2019 sold at 80 bps over Treasuries and $700 million of 3.3% seven-year notes priced at Treasuries plus 110 bps.

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