Supervalu revises $497 million term B-1 amend and extend proposal

By Sara Rosenberg

New York, April 27 - Supervalu Inc. has reworked the amendment and extension of its $497 million term loan B-1, according to a market source.

The company is now offering B-1 lenders the ability to extend their commitments into the existing term loan B-2 due Oct. 5, 2015, up to an amount of $150 million, the source said.

As before, there is also the option of extending into the new term loan B-3 due April 2018.

Price talk on the term loan B-3 has been moved to Libor plus 350 basis points from Libor plus 300 bps, the source continued. There is a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year.

Pricing on the existing term loan B-2 is Libor plus 325 bps, and it will stay at that level with this proposal, the source added.

The term loan B-1 due June 2012 is priced at Libor plus 125 bps.

Lenders are still being offered a 10 bps amendment fee.

RBS Securities Inc. and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Supervalu is an Eden Prairie, Minn.-based supermarket operator.

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