Published on 10/8/2014 in the Prospect News High Yield Daily.
New Issue: Albertson’s sells downsized $1.15 billion 7¾% eight-year notes at 98.55 to yield 8%
By Paul A. Harris
Portland, Ore., Oct. 8 – Albertson’s Holdings LLC priced a downsized $1,145,000,000 issue of 7¾% eight-year second-lien senior secured notes at 98.55 to yield 8% on Wednesday, according to a syndicate source.
The yield printed at the wide end of yield talk in the 7 7/8% area, and also at the wide end of initial guidance of 7¾% to 8%.
The deal was downsized from $1,245,000,000 after having been previously downsized from $1,375,000,000, and prior to that $1,625,000,000. Also, $300 million of the proceeds were shifted to a term loan tack-on. The bond deal size was also reduced because of notes not tendered in a tender offer.
BofA Merrill Lynch was the left bookrunner. Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Barclays and Deutsche Bank Securities Inc. were the joint bookrunners.
Proceeds will be used to help fund the acquisition of Pleasanton, Calif.-based food and drug retailer Safeway, Inc.
Albertson’s is a Boise, Idaho-based grocery company.
| Issuer: | Albertson's Holdings LLC
|
| Face amount: | $1,145,000,000, downsized from $1,245,000,000 after having been downsized from $1,375,000,000, and prior to that $1,625,000,000
|
| Proceeds: | $1.13 billion
|
| Maturity: | Oct. 15, 2022
|
| Security description: | Second-lien senior secured notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Barclays, Deutsche Bank Securities Inc.
|
| Co-managers: | U.S. Bancorp Investments Inc. SunTrust Robinson Humphrey Inc.
|
| Coupon: | 7¾%
|
| Price: | 98.55
|
| Yield: | 8%
|
| Spread: | 586 bps
|
| First call: | Oct. 15, 2017 at 105.813
|
| Trade date: | Oct. 8
|
| Settlement date: | Oct. 23
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7 7/8% area
|
| Marketing: | Roadshow
|
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