Albertsons Companies, LLC Announces $1.25 Billion Senior Notes Offering

Albertsons Companies, LLC announced a $1.25 billion pricing in aggregate principal amount of new 6.625% senior notes.

With plans to offer the senior notes in the U.S. to those qualified, as well as to those outside the U.S. in accordance with Regulation S under the Securities Act, the company stated in a release that any net proceeds from the $1.25 billion offering for the following:

• Pay the redemption price, as well as accrued and unpaid interest, in connection with the redemption of all of the outstanding 7.750% senior secured notes due 2022 co-issued by Albertons Companies and Safeway
• Repay certain amounts outstanding under its existing term loan facility
• Pay fees and expenses related to the Redemption and the issuance of the senior notes

Albertsons Companies and its subsidiaries, Safeway Inc., New Albertson's, Inc., and Albertson's LLC, will be co-issuers of the of the offering, according to the release.

Once the outstanding 7.750% senior secured notes are redeemed, the collateral currently securing the Safeway Notes, plus the guaranties of the Safeway Notes by Albertsons Company and its subsidiaries, will be released.

The current accrued and unpaid interest is due 2022, whereas the current offer on the table would be due 2024. Though it is subject to customary closing conditions, Albertsons stated that the offer is expected to close on or about May 31, 2016.