Albertsons launches $1.7 billion term loan B-8 at Libor plus 300 bps

By Sara Rosenberg

New York, Aug. 1 – Albertsons Cos. Inc. was scheduled to hold a lender call at 11:30 a.m. ET on Thursday to launch a $1.7 billion seven-year covenant-lite first-lien term loan B-8 that is talked at Libor plus 300 basis points with a 0.75% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan B-8 has 101 soft call protection for six months, the source said.

Credit Suisse Securities (USA) LLC is the left lead on the deal.

Commitments are due at 5 p.m. ET on Tuesday, the source added.

Proceeds will be used to refinance about $3 billion of existing term loan debt.

Other funds for the refinancing will come from $500 million in senior notes due 2028 and cash on hand.

Expected term loan ratings are Ba2/BB.

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

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