SuperValu to pay down debt with cash, no maturities for three years

By Devika Patel

Knoxville, Tenn., Dec. 6 – SuperValu Inc. is “well positioned” in regards to its balance sheet, with no maturities due for three years and $1 billion of liquidity.

The company has the ability to create cash, which it plans to use for debt repayment.

“We’re well positioned we think from a balance sheet perspective,” executive vice president and interim chief financial officer Rob Woseth said at the Barclays “Eat, Sleep, Play - It’s Not All Discretionary” Conference in New York on Wednesday.

“As [of] our second quarter, we had about $1 billion of liquidity between cash on hand and availability under our ABL.

“Our nearest maturity is over three years out, that’s our ABL, then followed by the notes and our term loan.

“So, we feel good [about] where we are from a balance sheet perspective,” he said.

The company is able to generate “strong cash,” which it will use to pay down debt.

“We think we’re well positioned to generate strong cash going forward,” Woseth said.

“From a capital allocation perspective, our intent is to take excess cash and invest it in the business, pay down debt and pay down our pension obligations,” he said.

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

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