MINNEAPOLIS--()--SUPERVALU INC. (NYSE: SVU) today announced it has successfully completed two debt financing transactions, totaling $2.5 billion.
“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”
- 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 2015;
- A $574 million term loan (B-2), scheduled to mature in October 2015; and
- 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 visit www.supervalu.com.
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 otherwise.