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SuperValu ups spread on $850 million term loan to Libor plus 675 bps
By Sara Rosenberg
New York, July 30 - SuperValu Inc. raised pricing on its $850 million covenant-light term loan (B1/BB-) to Libor plus 675 basis points from Libor plus 625 bps, according to a market source.
Also, the original issue discount was widened to 96 from 98, the source said.
Furthermore, the repricing protection is now 102 in year one and 101 in year two, versus just 101 in year one, and the tenor was shortened to six years from seven years, the source continued.
There is a still a 1.25% Libor floor.
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.
Recommitments are due at noon ET on Tuesday.
The company's $2.5 billion credit facility also provides for a $1.65 billion five-year ABL revolver that has pricing ranging from Libor plus 175 bps to 225 bps.
Joint bookrunners on the term loan are Credit Suisse Securities (USA) LLC and Barclays Capital Inc., and on the revolver are Wells Fargo Securities LLC, U.S. Bancorp Investments Inc., Barclays and Credit Suisse.
Proceeds from the credit facility will be used to refinance existing debt.
SuperValu is an Eden Prairie, Minn.-based supermarket operator.
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