By Paul A. Harris
Portland, Ore., June 6 – Albertsons Cos., Inc. priced an upsized $750 million issue of Libor plus 375 basis points 5.5-year senior secured floating-rate notes at 99.5 on Wednesday, according to a company press release.
The issue size was increased from $500 million.
The deal had been in the market with early guidance of Libor plus 425 bps at 99.5.
BofA Merrill Lynch was the lead left bookrunner. Joint bookrunners were Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Morgan Stanley & Co. LLC, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC and MUFG.
The deal came in connection with the company’s merger with Rite Aid Corp. If the merger is not completed by Nov. 18, 2018, the notes will be required to be redeemed at the offering price.
Proceeds, together with drawings under the company’s ABL facility, proceeds from a new ABL term loan facility and cash on hand, will be used to pay part of the merger consideration, to repay Rite Aid’s debt, to cover fees and expenses and for general corporate purposes.
Albertsons is a Boise, Idaho-based food and drug retailer with 2,318 stores in 35 states.
| Issuer: | Albertsons Cos., Inc.
|
| Amount | $750 million, increased from $500 million
|
| Tenor: | 5.5 years
|
| Securities: | Senior secured floating-rate notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Morgan Stanley & Co. LLC, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC, MUFG
|
| Coupon: | Libor plus 375 bps
|
| Price: | 99.5
|
| Call protection: | 1.5 years
|
| Trade date: | June 6
|
| Settlement date: | June 25
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
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