BOISE, Idaho, May 25, 2016 /PRNewswire/ -- Albertsons Companies, LLC (the "Company") today announced the pricing of $1.250 billion in aggregate principal amount of new 6.625% senior notes due 2024 (the "Notes"). The Company and its subsidiaries, Safeway Inc. ("Safeway"), New Albertson's, Inc. and Albertson's LLC, will be co-issuers of the Notes. The offering is expected to close on or about May 31, 2016, subject to customary closing conditions.
The Company intends to use the net proceeds from the offering to (i) pay the redemption price and accrued and unpaid interest in connection with the redemption of all of the outstanding 7.750% senior secured notes due 2022 co-issued by the Company and Safeway (the "Redemption"), (ii) repay certain amounts outstanding under its existing term loan facility and (iii) pay fees and expenses related to the Redemption and the issuance of the Notes. Any notice of Redemption will be made in accordance with the terms of the indenture governing the existing 7.750% senior secured notes due 2022. Upon consummation of the Redemption, as permitted by the indenture governing Safeway's existing notes (the "Safeway Notes"), the collateral currently securing the Safeway Notes and the guaranties of the Safeway Notes by the Company and its subsidiaries will be released.
The Notes will be offered in the United States to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States pursuant to Regulation S under the Securities Act. The Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About Albertsons Companies, LLC
Albertsons Companies, LLC is one of the largest food and drug retailers in the United States, with both a strong local presence and national scale. We operate stores across 35 states and the District of Columbia under 18 well-known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market and Carrs.
Important Notice Regarding Forward-Looking Statements
This press release contains certain forward-looking statements. Statements that are not historical facts, including statements about our perspectives and expectations, are forward looking statements. The words "expect," "believe," "estimate," "intend," "plan" and similar expressions, when related to the Company and its subsidiaries, indicate forward-looking statements. These statements reflect the current view of management and are subject to various risks and uncertainties. These statements are based on various assumptions and factors, including general economic, market, industry and operational factors. Any changes to these assumptions or factors may lead to practical results different from current expectations. Excessive reliance should not be placed on those statements. Forward-looking statements relate only to the date they were made, and the Company and its subsidiaries undertake no obligation to update forward-looking statements to reflect events or circumstances after the date they were made.
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