SuperValu plans asset-based lending facility and term loan for August

By Jennifer Chiou

New York, July 11 - SuperValu Inc. announced in its results report for the first quarter of fiscal 2013 ended June 16 that it will replace its senior credit facility with an asset-based lending facility and term loan secured by a portion of its real estate.

In order to enhance financial flexibility, the ABL facility and term loan are to remove restrictive covenant concerns for the company.

SuperValu said that it has entered into underwritten commitments with banks for the financing, which is expected to close in August.

Also in the report, the company noted that it plans to reduce capital expenditures in fiscal 2013 to a range of $450 million to $500 million from $675 million.

Additionally, SuperValu aims to increase debt reduction to a range of $450 million to $500 million during the same period and plans to pay down at least $400 million of debt annually thereafter.

The Eden Prairie, Minn.-based supermarket operator said that its board and management, along with financial advisors Goldman Sachs and Greenhill & Co., have initiated a review of strategic alternatives to create value for its shareholders.

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