SuperValu launches $850 million term loan at Libor plus 625 bps

By Sara Rosenberg

New York, July 13 - SuperValu Inc. launched its $850 million seven-year covenant-light term loan on Friday morning with price talk of Libor plus 625 basis points with a 1.25% Libor floor and an original issue discount of 98, according to a market source.

There is 101 soft call protection for one year.

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.

Commitments are due on July 27, the source added.

The $2.5 billion credit facility also includes a $1.65 billion five-year ABL revolver.

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.

Proceeds will be used to refinance existing debt.

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

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