SuperValu to launch $2.5 billion credit facility on Friday morning

By Sara Rosenberg

New York, July 12 - SuperValu Inc. has set a bank meeting for 9:30 a.m. ET on Friday to launch a proposed $2.5 billion credit facility, according to sources.

The facility consists of a $1.65 billion five-year ABL revolver and an $850 million seven-year covenant-light term loan, sources said.

The term loan will have 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC and Barclays Capital Inc. are the joint bookrunners on the term loan, and Wells Fargo Securities LLC, U.S. Bancorp Investments Inc., Barclays and Credit Suisse are the bookrunners on the ABL revolver.

Security for the term loan is a first-lien in real estate with an appraised value of at least 1.5 times the amount of the loan.

Also, the term loan has a springing maturity to 90 days prior to the maturity of the 7½% senior notes due 2014 and 8% senior notes due 2016 if more than $200 million of either is outstanding at that time, sources added.

Proceeds will be used to refinance existing debt.

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

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