Albertsons to sell $2.35 billion of notes in three parts on Wednesday

By Paul A. Harris

Portland, Ore., Jan. 21 – Albertsons Cos. Inc. plans to price $2.35 billion of senior notes (existing ratings B3/BB-) in three tranches on Wednesday, according to market sources.

In conjunction with co-issuers Safeway Inc., New Albertsons LP and Albertson’s LLC, the Boise-based grocery retailer is offering $750 million of new three-year notes, in addition to a $600 million add-on to the 4 5/8% notes due Jan. 15, 2027 and $1 billion of new 10-year notes, which come with five years of call protection.

BofA Securities Inc. is leading the Rule 144A and Regulation S for life deal.

Albertsons plans to use the proceeds, along with cash on hand, to pay off its term loan facility.

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