Albertsons amends and restates $4 billion ABL revolver

By William Gullotti

Buffalo, N.Y., Dec. 23 – Albertsons Cos., Inc. and certain subsidiaries entered into a fourth amended and restated asset-based revolving credit agreement maturing Dec. 20, 2026, according to an 8-K filing with the Securities and Exchange Commission.

The $4 billion ABL revolver is subject to a borrowing base and has a conditional $1.5 billion accordion option. The company may prepay borrowings without premium or penalty.

Borrowings bear interest at Libor plus an applicable margin. The margin will be 125 basis points if daily average excess availability during the most recently ended fiscal quarter is greater than or equal to 50% of the total commitments, 150 bps if the daily average excess availability is less than 50%. Interest is initially Libor plus 125 bps.

The amended facility also provides for a successor rate to Libor.

The commitment fee is 25 bps per annum on the average daily unused amount of the ABL facility.

The ABL revolver requires that if excess availability is less than 10% of the lesser of the total commitments and the then-current borrowing base at any time or $250 million at any time or an event of default is continuing, Albertsons and its subsidiaries must maintain a fixed-charge coverage ratio of 1 to 1 from the date such triggering event occurs until such event of default is cured or waived and/or the 30th day that all such triggers under the clause no longer exist.

As of the Dec. 20 effective date, there were no revolving loans outstanding and approximately $250 million in letters of credit outstanding under the restated agreement.

Proceeds from the ABL revolver may be used for working capital and general corporate purposes.

Bank of America, NA, Wells Fargo Bank, NA, Bank of Montreal, Barclays Bank plc, Citibank, NA, Credit Suisse Loan Funding LLC, Deutsche Bank Securities Inc., Fifth Third Bank, NA, Goldman Sachs Bank USA, Morgan Stanley Senior Funding, Inc., MUFG Union Bank, NA, PNC Capital Markets LLC, RBC Capital Markets, Truist Securities, Inc., TD Bank, NA and U.S. Bank NA are joint lead arrangers, joint bookrunners and co-syndication agents.

Bank of America is the administrative agent.

Albertsons is a Boise, Idaho-based food and drug retailer.

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