Albertsons to sell $500 million 8.5-year guaranteed notes on Thursday

By Paul A. Harris

Portland, Ore., Aug. 1 – Albertsons Cos., Inc. plans to price a $500 million offering of 8.5-year senior guaranteed notes (existing ratings B3/BB-) in a quick-to-market Thursday trade following a mid-morning conference call with investors, according to a syndicate source.

BofA Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC and MUFG are the joint bookrunners.

PNC Capital Markets LLC, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. are the co-managers.

The Rule 144A and Regulation S notes come with three years of call protection and feature a three-year 40% equity clawback at par plus the coupon and a 101% poison put.

The issuing entities are Albertsons Cos., Inc., Safeway Inc., New Albertsons LP and Albertson’s LLC.

The Boise-based food and drug retailer plans to use the proceeds to pay down its term loan.

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