Supervalu Completes Previously Announced $2.5B Financing Transactions
SUPERVALU (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 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.
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