Supervalu has announced today the closing of an offering of US$500m in aggregate principal amount of its 7.50% Senior Notes due 2014. The Notes will be senior obligations and rank equally with all of its other senior unsecured indebtedness, the supermarket chain said.
Supervalu intends to use the net proceeds from the offering of the Notes to purchase 7.25% Hybrid Income Term Security Units held in the form of Corporate Units of its wholly owned subsidiary, New Albertson’s, tendered in the retailer’s offer to purchase any and all such outstanding Corporate Units at a purchase price in cash of $25.22 per Corporate Unit. The offer will expire at 5:00pm New York City time, on 20 November 2006 unless extended or earlier terminated.
As a result of the completion of the offering of the Notes, Supervalu has announced that the financing condition to the offer has been satisfied. However, the completion of the offer remains subject to the other closing conditions and subject to applicable law, Supervalu said.