SuperValu holders tender $373.05 million notes in oversubscribed offer

By Susanna Moon

Chicago, May 31 - SuperValu Inc. said investors tendered $373,053,000 of 8% senior notes due May 1, 2016 as of midnight ET on May 30, the offer expiration.

The offer was oversubscribed by the early tender date, as noted before, and the company will accept none of the notes tendered since the early deadline, according to a company press release.

The company settled the $372,018,000 of notes tendered by midnight ET on May 15, the early tender date on May 21.

The company began the modified Dutch auction tender offer on May 3 for up to $300 million of its $1 billion of notes, and on May 16, it lifted the offer cap to the amount tendered by the early deadline.

As previously noted, SuperValu also amended the offer's financing condition so that the new notes offering, proceeds of which were to be used to fund the tender offer, needed to result in the issuance of at least $372,018,000 of notes, up from $300 million. On May 16, the company priced $400 million of eight-year senior notes at par to yield 6¾%.

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

The total payment included $30.00 for each $1,000 of notes tendered by the early deadline.

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

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) was the dealer manager. Global Bondholder Services Corp. (866 873-6300 or collect 212 430-3774) was the tender agent and information agent.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.