Albertsons to launch $2 billion term loan B-7 on Tuesday morning

By Sara Rosenberg

New York, Oct. 22 – Albertsons Cos. Inc. is set to hold a lender call at 9 a.m. ET on Tuesday to launch a $2 billion seven-year covenant-light first-lien term loan B-7 (Ba2/BB-), according to a market source.

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

Price talk on the term loan is Libor plus 300 basis points with a 0.75% Libor floor and an original issue discount of 99.5, the source said.

The term loan has 101 soft call protection for six months.

Commitments are due at noon ET on Friday, the source added.

Proceeds will be used with cash and an ABL revolver draw to refinance an existing term loan B-4.

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

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