Supervalu to hold agent meeting for $4 billion facility on Monday

By Sara Rosenberg

New York, Feb. 1 - Supervalu Inc. is scheduled to hold a bank meeting in New York City on Monday for agent level invitees only to launch its proposed $4 billion credit facility, according to a market source.

Royal Bank of Scotland is the lead arranger on the deal.

The general syndication bank meeting is expected to take place this spring.

The facility consists of a $2 billion revolver talked at Libor plus 150 basis points with a 40 bps undrawn fee, a $1.25 billion term loan A talked at Libor plus 150 bps and a $750 million term loan B with pricing still to be determined, the source said.

Expected ratings on the deal are Ba3/BB-.

Proceeds from the credit facility will be used by the Eden Prairie, Minn., supermarket operator to purchase some assets from Albertson's Inc., including the operations of Acme Markets, Bristol Farms, Jewel-Osco, Shaw's Supermarkets, Star Markets and Albertsons banner stores in the Intermountain, Northwest and Southern California regions.

Supervalu's total consideration is $12.4 billion in stock, cash and the assumption of $6.1 billion of Albertson's debt.

The transaction is subject to approval by both Supervalu and Albertson's stockholders as well as customary regulatory approvals.

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