Ahold Delhaize buys back, cancels all ₯33 billion floaters due May 2031

By Tali Rackner

Norfolk, Va., Nov. 15 – Koninklijke Ahold Delhaize NV announced the buyback and cancellation of the entire principal amount of its ₯33 billion floating-rate notes due May 2031.

The company bought back the notes at 108.1% on Nov. 15, according to a notice.

The associated yen/euro currency swap will be unwound as part of the transaction. Together, the yen-denominated notes and the swap effectively represent a synthetic €299 million long-term liability at an annual interest rate of 7.065%, the notice said.

The cost of buying back the notes and unwinding the swap will be funded with cash on hand and will be reflected in Ahold Delhaize's fourth-quarter 2016 results as a corresponding one-off cost of €243 million before taxes.

“The transaction is value accretive, achieves a reduction in annual interest expense of approximately €21 million and will have no material impact on current leverage ratios, Ahold Delhaize's ability to fund its growth opportunities or to further optimize its capital structure,” the company said.

Ahold Delhaize is a food retailer based in Zaandam, the Netherlands.

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