SUPERVALU Completes Repricing, Amendment and Extension of Its $1.0 Billion Asset-Based Revolving Credit Facility
February 04 2016 - 08:00AM
Business Wire
SUPERVALU INC. (NYSE:SVU) today announced it has 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 revolving credit
facility’s rates on borrowings and letters of credit by 0.25
percent and the facility fees by 0.125 percent. Additionally, the
maturity date of the revolving credit facility was extended by
approximately sixteen months to February 3, 2021.
On July 28, 2015, the Company announced that it is exploring a
potential separation of its Save-A-Lot segment, and that as part of
that process it had begun preparations to allow for a possible
spin-off of Save-A-Lot into a stand-alone, publicly traded company.
This amendment permits the Company and its subsidiaries to
undertake certain transactions reasonably determined by the Company
to be necessary to effectuate a spin-off of Save-A-Lot. No specific
timetable for a separation of Save-A-Lot has been set and there can
be no assurance that a separation will be completed or that any
other change in the Company’s overall structure or business model
will occur.
This amendment also modifies certain representations and
warranties, covenants and events of default set forth in the
revolving credit facility, and provides for the adjustment of
certain covenants in the event a spin-off of Save-A-Lot is
consummated.
Wells Fargo, U.S. Bank, Rabobank and BMO Capital Markets acted
as Joint Lead Arrangers and Joint Bookrunners on the amendment.
About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and
retailers in the U.S. with annual sales of approximately $18
billion. SUPERVALU serves customers across the United States
through a network of 3,407 stores composed of
1,871 independent stores serviced primarily by the Company’s
food distribution business; 1,336 Save-A-Lot stores, of which 883
are operated by licensee owners; and 200 traditional retail grocery
stores (store counts as of December 5, 2015). Headquartered in
Minnesota, SUPERVALU has approximately 40,000 employees. For more
information about SUPERVALU visit www.supervalu.com.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995.
Except for the historical and factual information contained
herein, the matters set forth in this news release, particularly
those pertaining to SUPERVALU’s expectations, guidance, or future
operating results, and other statements identified by words such as
"estimates," “anticipates,” "expects," "projects," "plans,"
“intends” and similar expressions are forward-looking statements
within the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to risks and uncertainties that may cause
actual results to differ materially, including uncertainties as to
the Company’s continued access to credit on acceptable terms, the
sufficiency of short-term and long-term financing to support the
Company’s strategic and operational investments, the terms, timing
or structure of any Save-A-Lot separation transaction and whether
one will be consummated at all, the impact of any separation
transaction on the businesses of SUPERVALU and the
Save-A-Lot business on a standalone basis if the separation were to
be completed, whether the operational and strategic benefits of a
separation can be achieved and whether the costs and expenses of
the separation can be controlled within expectations. Other
factors include competition, ability to execute initiatives,
substantial indebtedness, labor relations issues, escalating costs
of providing employee benefits, relationships with Albertson’s LLC,
New Albertson’s, Inc. and Haggen, intrusions to and disruption
of information technology systems, impact of economic conditions,
governmental regulation, food and drug safety issues, legal
proceedings, severe weather, natural disasters and adverse climate
changes, disruption to supply chain and distribution network,
changes in military business, adequacy of insurance, volatility in
fuel and energy costs, asset impairment charges, fluctuations in
our common stock price and other risk factors relating to our
business or industry as detailed from time to time
in SUPERVALU's reports filed with the SEC. You
should not place undue reliance on these forward-looking
statements, which speak only as of the date of this news
release. Unless legally
required, SUPERVALU undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result
of new information, future events or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20160204005700/en/
SUPERVALU INC.INVESTOR CONTACT:Steve Bloomquist,
952-828-4144steve.j.bloomquist@supervalu.comMEDIA
CONTACT:Jeff Swanson,
952-903-1645jeffrey.s.swanson@supervalu.com
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