SuperValu amends $1 billion revolver, extends to 2019; pricing reduced

By Susanna Moon

Chicago, April 17 - SuperValu Inc. said it amended its $1 billion asset-based revolving credit facility and extended the term by 11 months to February 2019.

Pricing was reduced to Libor plus 150 basis points to 200 bps, based on utilization.

Wells Fargo, U.S. Bank, Rabobank, Goldman Sachs, Credit Suisse, Morgan Stanley, Barclays and Bank of America Merrill Lynch were the joint lead arrangers and joint bookrunners.

The amendment also eliminates the springing maturity provision that would have accelerated the revolver to 90 days prior to May 1, 2016 if more than $250 million of the company's 8% senior notes remained outstanding as of that date, according to a company press release.

The springing maturity provision was replaced with a springing reserve provision that calls for a reserve to be placed against availability under the facility in the amount of any outstanding material debt that is due within 30 days of the date the reserve is established.

In addition, the amendment also expands the ability to increase the company's $1.5 billion senior secured term loan facility, subject to a secured leverage test, by up to $500 million, up from $250 million, with commitments.

The amendment also contains modified covenants to give the company additional strategic and operational flexibility and includes certain other non-material changes, the company said.

The facility is secured by the company's inventory, credit card and other receivables and other assets.

SuperValu is an Eden Prairie, Minn.-based food wholesaler.

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