Published on 11/7/2019 in the Prospect News High Yield Daily.
New Issue: Albertsons prices upsized $750 million senior notes due 2027 at par to yield 4 5/8%
By Paul A. Harris
Portland, Ore., Nov. 7 – Albertsons priced an upsized $750 million issue of senior guaranteed notes due Jan. 15, 2027 (B3/BB-) at par to yield 4 5/8% in a quick-to-market Thursday trade, according to market sources.
The issue size increased from $500 million.
The yield printed in the middle of yield talk in the 4 5/8% area. Initial guidance had the notes coming to yield in the high 4% area.
BofA Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC and MUFG were the joint bookrunners.
The notes were sold via Albertsons Cos., Inc., Safeway Inc., New Albertsons LP and Albertson’s LLC.
The Boise, Idaho-based grocery company plans to use the proceeds, including the additional proceeds resulting from the $250 million upsizing of the deal, to repay debt under its term loan B-7.
| Issuers: | Albertsons Cos., Inc., Safeway Inc., New Albertsons LP, Albertson’s LLC
|
| Amount: | $750 million, increased from $500 million
|
| Maturity: | Jan. 15, 2027
|
| Securities: | Senior guaranteed notes
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| Bookrunners: | BofA Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC and MUFG
|
| Co-managers: | PNC Capital Markets LLC, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc.
|
| Coupon: | 4 5/8%
|
| Price: | Par
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| Yield: | 4 5/8%
|
| Spread: | 278 bps
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| First call date: | Jan. 15, 2022
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| Trade date: | Nov. 7
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| Settlement date: | Nov. 22
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| Ratings: | Moody's: B3
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| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4 5/8% area
|
| Marketing: | Quick to market
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