By Paul A. Harris
Portland, Ore., May 16 - SuperValu Inc. priced a $400 million issue of eight-year senior notes (Caa1/B-/) at par to yield 6¾% on Thursday, according to a market source.
The yield printed at the wide end of the 6½% to 6¾% yield talk.
Goldman Sachs & Co. and Credit Suisse Securities (USA) LLC are the joint bookrunners.
The Rule 144A and Regulation S notes come with four years of call protection.
The Minneapolis-based grocery wholesaler and retailer plans to use the proceeds to fund the tender for its 8% senior notes due 2016.
| Issuer: | SuperValu Inc.
|
| Amount: | $400 million
|
| Maturity: | June 1, 2021
|
| Securities: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co. and Credit Suisse Securities (USA) LLC
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 531 bps
|
| Call protection: | Four years
|
| Trade date: | May 16
|
| Settlement date: | May 21
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6½% to 6¾%
|
| Marketing: | Quick to market
|
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