Published on 1/22/2019 in the Prospect News High Yield Daily.
New Issue: Albertsons prices upsized $600 million 7½% seven-year notes at par
By Paul A. Harris
Portland, Ore., Jan. 22 – Albertsons Cos., Inc. priced an upsized $600 million issue of seven-year senior notes (B3/B+) at par to yield 7½% in a quick-to-market Tuesday trade, according to market sources.
The issue size was increased from $500 million.
The yield printed at the tight end of the 7½% to 7¾% yield talk.
BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC and MUFG were the joint bookrunners.
The Boise-based grocery retailer plans to use the proceeds to repay the outstanding Safeway notes due 2019 and for general corporate purposes.
| Issuer: | Albertsons Cos., Inc.
|
| Amount: | $600 million, increased from $500 million
|
| Maturity: | March 15, 2026
|
| Securities: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC and MUFG
|
| Co-managers: | PNC Capital Markets LLC, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc.
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Call protection: | Three years
|
| Trade date: | Jan. 22
|
| Ratings: | Moody's: B3
|
| S&P: B+
|
| Distribution: | Rule 144A for life
|
| Price talk: | 7½% to 7¾%
|
| Marketing: | Quick to market
|
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