Albertsons driving by with $750 million offering of five-year notes; initial talk high 6% area

By Paul A. Harris

Portland, Ore., Feb. 6 – Albertsons Cos., Inc. plans to price a $750 million offering of five-year senior notes (Ba3/BB) in a Monday drive-by, according to market sources.

The deal, which was set to kick off on a Monday morning conference call with investors, is in the market with initial guidance in the high-6% area.

BofA Securities Inc. is at the left of a syndicate of deal managers that includes Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, U.S. Bancorp Investments Inc., BMO Capital Markets Corp., MUFG Securities Americas Inc., PNC Capital Markets LLC and TD Securities (USA) LLC.

The Rule 144A and Regulation S for life notes come with two years of call protection.

The co-issuers will be subsidiaries Safeway Inc., New Albertsons LP, Albertson's LLC and Albertsons Safeway LLC.

The Boise, Idaho-based supermarket operator plans to use the proceeds to pay off its 3½% senior notes due Feb. 15, 2023.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.