Albertsons lifts asset-based term loan amount to $1.5 billion

By Sara Rosenberg

New York, April 30 – Albertsons Cos. Inc. increased the sized its five-year asset-based last-out term loan to $1.5 billion from $1.2 billion, according to a market source.

The term loan is still talked at Libor plus 350 basis points with a 0% Libor floor and an original issue discount of 99.5.

As before, the term loan has 101 soft call protection for six months and a ticking fee of half the margin from days 46 to 75, the full margin from days 76 to 105 and the full margin plus Libor thereafter.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC and MUFG are the joint lead arrangers on the deal.

Commitments continue to be due at noon ET on Wednesday, the source added.

Proceeds will be used to refinance existing debt at Rite Aid Corp. and, if applicable, fund the cash portion of the Rite Aid merger.

Albertsons is a Boise, Idaho-based food and drug retailer. Rite Aid is a Camp Hill, Pa., national drugstore chain.

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