SuperValu gets tenders for $372 million 8% notes so far; ups offer cap

By Susanna Moon

Chicago, May 16 - SuperValu Inc. said investors tendered $372,018,000 of its $1 billion of outstanding 8% senior notes due May 1, 2016 as of midnight ET on May 15, the early tender date.

The company began the modified Dutch auction tender offer on May 3 for up to $300 million of notes, and on May 16 it increased the offer cap to the amount tendered by the early deadline.

As a result, the offer has been fully subscribed by the early tender deadline.

SuperValu also amended the offer's financing condition so that the new notes offering, proceeds of which will be used to fund the tender offer, must result in the issuance of at least $372,018,000 of notes, up from $300 million.

The clearing price for the offer was set at $1,130 for each $1,000 principal amount of notes tendered by the early date, which was at the high end of the range from $1,090 to $1,130 per $1,000 principal amount.

The total payment includes $30 for each $1,000 of notes tendered by the early deadline.

The company also will pay accrued interest from the last interest payment date to but excluding the settlement date.

Those who tendered after the early deadline would have received the total payment less the early premium.

The tender offer is scheduled to end at midnight ET on May 30.

Tendered notes may no longer be withdrawn, as of the early tender deadline.

Holders tendering notes under the offer needed to specify the minimum total payment they would be willing to receive in exchange for each $1,000 principal amount of notes. The price needed to be expressed in increments of $2.50 and within the range of the offer.

Those who tendered without specifying a price were deemed to have specified a price equal to the minimum price.

Goldman, Sachs & Co. (800 828-3182 or collect 212 357-0215) is the dealer manager. Global Bondholder Services Corp. (866 873-6300 or collect 212 430-3774) is the tender agent and information agent.

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

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