MINNEAPOLIS--(BUSINESS WIRE)--Aug. 30, 2012--
SUPERVALU INC. (NYSE: SVU) today announced it has successfully completed
two debt financing transactions, totaling $2.5 billion.
A new five-year $1.65 billion asset-based revolving credit facility,
secured by the Company’s inventory, credit card receivables and
certain other assets, which will bear interest at the rate of LIBOR +
1.75 percent to LIBOR + 2.25 percent (depending on utilization). The
line of credit’s lead arrangers are Wells Fargo, U.S. Bank, Barclays
and Credit Suisse.
A new six-year $850 million term loan, secured by a portion of the
Company’s real estate and equipment, which will bear interest at the
rate of LIBOR + 6.75 percent and include a floor on LIBOR set at 1.25
percent. The term loan’s lead arrangers are Credit Suisse and Barclays.
These obligations replace the Company’s senior secured credit facilities
which were composed of:
A $1.5 billion revolving credit facility, scheduled to mature in April
A $574 million term loan (B-2), scheduled to mature in October 2015;
A $446 million term loan (B-3), scheduled to mature in April 2018.
“The closing of these financings eliminate certain prior restrictive
financial covenants and will provide SUPERVALU with more financial
flexibility as we execute our business turnaround,” said Sherry Smith,
executive vice president and chief financial officer.
About SUPERVALU INC.
SUPERVALU INC. is one of the largest companies in the U.S. grocery
channel with annual sales of approximately $35 billion. SUPERVALU serves
customers across the United States through a network of approximately
4,400 stores composed of 1,101 traditional retail stores, including 798
in-store pharmacies; 1,336 hard discount stores, of which 939 are
operated by licensee owners; and 1,950 independent stores serviced
primarily by the Company's food distribution business. SUPERVALU has
approximately 130,000 employees. For more information about SUPERVALU
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE
PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995.
Except for the historical and factual information contained herein,
the matters set forth in this news release,
particularly those pertaining to SUPERVALU’s expectations, guidance,
or future operating results, and other statements identified by words
such as "estimates," "expects," "projects," "plans," and similar
expressions are forward-looking statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially,
including competition, ability to execute initiatives, substantial
indebtedness, impact of economic conditions, labor relations issues,
escalating costs of providing employee benefits, regulatory matters,
food and drug safety issues, self-insurance, legal and administrative
proceedings, information technology, severe weather, natural disasters
and adverse climate changes, the continuing review of goodwill and other
intangible assets, accounting matters and other risk factors relating to
our business or industry as detailed from time to time in SUPERVALU's
reports filed with the SEC. You should not place undue reliance
on these forward-looking statements, which speak only as of the date of
this news release. Unless legally required, SUPERVALU undertakes
no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or
Source: SUPERVALU INC.