US: Delhaize announces US$1.1bn debt buyback

By just-food.com | 30 May 2007

Belgian supermarket operator Delhaize has announced that its US subsidiary will buy back US$1.1bn of its debt.

Delhaize intends to purchase notes due in 2011 and 2027 and debentures due on 2031. The retail group said it will launch its tender offer today (30 May).

The move will be financed through the issue of new securities, Delhaize said in a statement. The company plans to issue a series of senior notes due in 2014 and a series due in 2017.

The company expects the buyback to result in a one-off charge to be recorded in the second quarter of this year. The refinancing is expected to have a positive impact on earnings from fiscal 2008.

Companies: Delhaize