Albertsons cuts spread on $1.6 billion term B-8 to Libor plus 275 bps

By Sara Rosenberg

New York, Aug. 6 – Albertsons Cos. Inc. reduced pricing on its $1.6 billion seven-year covenant-lite first-lien term loan B-8 (Ba2/BB) to Libor plus 275 basis points from Libor plus 300 bps, according to a market source.

The term loan B-8 still has a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Earlier in syndication, the term loan B-8 was downsized from $1.7 billion as the company upsized its senior note offering to $750 million from $500 million.

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

Commitments continued to be due at 5 p.m. ET on Tuesday, the source said.

Proceeds from the loan, notes and cash on hand will be used to refinance about $3.2 billion of existing term loan debt.

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

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