Company Website:
http://www.supervalu.com
MINNEAPOLIS -- (Business Wire)
SUPERVALU INC. (NYSE: SVU) today announced it has successfully completed
the repricing, amendment and extension of its existing $1.0 billion
asset-based revolving credit facility, which is secured by the Company’s
inventory, credit card and certain other receivables and certain other
assets. The amendment reduces the facility’s interest rates to LIBOR
plus 1.50 percent to 2.00 percent and prime plus 0.50 percent to 1.00
percent, depending on utilization. The amendment also eliminates the
springing maturity provision that would have accelerated the revolving
credit facility’s maturity to 90 days prior to May 1, 2016 if more than
$250 million of the Company’s 8% senior notes remained outstanding as of
that date. The springing maturity provision was replaced with a
springing reserve provision that calls for a reserve to be placed
against availability under the facility in the amount of any outstanding
material indebtedness (as defined in the credit facility) that is due
within 30 days of the date the reserve is established. In addition, the
amendment also expands the ability to increase the Company’s $1.5
billion senior secured term loan facility, subject to a secured leverage
test, by up to $500 million (previously $250 million), subject to
identifying term loan lenders or other institutional lenders willing to
provide the additional loans and the satisfaction of certain terms and
conditions. The amendment also contains modified covenants to give the
Company additional strategic and operational flexibility and includes
certain other non-material changes. Additionally, the maturity date of
the revolving credit facility was extended by eleven months to February
2019.
Wells Fargo, U.S. Bank, Rabobank, Goldman Sachs, Credit Suisse, Morgan
Stanley, Barclays and Bank of America Merrill Lynch acted as Joint Lead
Arrangers and Joint Bookrunners on the amendment.
About SUPERVALU:
SUPERVALU INC. is one of the largest grocery wholesalers and retailers
in the U.S. with annual sales of approximately $17 billion. SUPERVALU
serves customers across the United States through a network of 3,358
stores composed of 1,834 independent stores serviced primarily by the
Company’s food distribution business, 1,334 Save-A-Lot stores, of which
954 are operated by licensee owners; and 190 traditional retail grocery
stores. Headquartered in Minnesota, SUPERVALU has approximately 35,000
employees. For more information about SUPERVALU visit www.supervalu.com.
Contacts:
SUPERVALU INC.
Investor Contact
Steve
Bloomquist, 952-828-4144
steve.j.bloomquist@supervalu.com
or
Media
Contact
Jeff Swanson, 952-903-1645
jeffrey.s.swanson@supervalu.com
Source: SUPERVALU INC.
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