MINNEAPOLIS--(BUSINESS WIRE)--Jun. 8, 2017--
SUPERVALU INC. (NYSE: SVU) today announced it has successfully completed
the refinancing of its existing senior secured term loan credit
agreement. The new seven-year senior secured term loan credit agreement
provides for an initial term loan facility of $525 million, which was
used to refinance outstanding loans under the prior term loan credit
agreement, and a delayed draw term loan facility of $315 million which
is expected to be drawn down in full for the purpose of consummating the
acquisition of Unified Grocers, Inc. The acquisition is currently
expected to close in late June, and remains subject to customary closing
Borrowings under this new term loan credit agreement will bear interest
at the rate of LIBOR plus 3.50 percent with a floor on LIBOR set at 1.00
percent, reflecting a 1.00 percent rate reduction compared to the prior
term loan credit agreement for LIBOR based loans. The new term loan
credit agreement will mature on June 8, 2024. However, if the Company
has not repaid its 6.75 percent senior notes due June 1, 2021 or its
7.75 percent senior notes due November 15, 2022 by the date that is 91
days prior to the respective maturity date of such notes, the term loan
will mature on the date that is 91 days prior to the maturity date of
such notes. In addition, the covenants in the new term loan credit
agreement were modified to give the Company additional strategic and
Goldman Sachs Bank USA, RBC Capital Markets, Barclays, Credit Suisse,
BMO Capital Markets and Citigroup acted as joint lead book-runners and
joint lead arrangers while Wells Fargo Securities, U.S. Bank N.A.,
Rabobank and Natixis Securities acted as co-managers on the refinancing.
About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and retailers
in the U.S. with annual sales of approximately $12 billion. SUPERVALU
serves customers across the United States through a network of 2,363
stores composed of 1,902 stores operated by wholesale customers serviced
primarily by the Company’s food distribution business and 217
traditional retail grocery stores operated under five retail banners in
six geographic regions (store counts as of February 25, 2017).
Headquartered in Minnesota, SUPERVALU has approximately 29,000
employees. For more information about SUPERVALU visit www.supervalu.com.
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Source: SUPERVALU INC.
Jeff Swanson, 952-903-1645