Supervalu to prepay $750 million on term loan via Save-A-Lot sale

By Tali Rackner

Norfolk, Va., Oct. 17 – Supervalu Inc. plans to prepay at least $750 million against its outstanding term loan balance with the net proceeds from the sale of its Save-A-Lot business to Onex Corp., according to a press release.

The company intends to use the remaining proceeds from the $1,365,000,000 sale to further reduce debt and improve its capital structure, as well as to fund corporate and growth initiatives.

The sale is expected to be completed by Jan. 31.

SuperValu is an Eden Prairie, Minn.-based supermarket operator and wholesale grocery distributor.

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