BOISE, Idaho, Aug. 4, 2016 /PRNewswire/ -- Albertsons Companies, LLC (the "Company") today announced the pricing of an upsized private offering of $1.250 billion in aggregate principal amount of new 5.750% senior notes due 2025 (the "Notes"). This represents a $500.0 million increase in the original offering amount. The Company and its subsidiaries, Safeway Inc., New Albertson's, Inc. and Albertson's LLC, will be co-issuers of the Notes. The offering is expected to close on or about August 9, 2016, subject to customary closing conditions.
The Company intends to use the net proceeds from the offering (i) to repay all borrowings outstanding under its senior secured asset-based loan facility as of the date hereof, (ii) to repay $500.0 million of amounts outstanding under its existing term loan facility and (iii) to pay fees and expenses related to the issuance of the Notes. The Company intends to use any remaining proceeds for general corporate purposes, which may include the repayment of indebtedness, capital expenditures, working capital and potential acquisitions and strategic transactions.
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 19 well-known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Carrs and Haggen.
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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SOURCE Albertsons Companies, LLC