| NEW YORK
NEW YORK Jan 29 SuperValu set pricing
on the $1.5 billion term loan backing its $3.3 billion deal to
sell five of its supermarket chains to an investor group led by
Cerberus Capital Management LP, sources told Thomson
The supermarket operator set the interest rate it will pay
on the six-year covenant-lite loan at a bank meeting earlier
today. The rate will be 575bp over Libor with a 1.25 percent
Libor floor and will be sold at a discount of 98.5 cents on the
On January 10, SuperValu announced the sale of its
Albertsons, Acme, Jewel-Osco, Shaw's and Star Market stores and
related Osco and Sav-on in-store pharmacies to a Cerberus-led
Goldman Sachs, Credit Suisse, Morgan Stanley, Bank of
America Merrill Lynch, and Barclays are providing the term loan.
The loan will benefit from 101 soft call protection for one
year and will be secured by SuperValu real estate assets and an
equity pledge from Moran Foods LLC. Moran is the parent entity
for the Save-A-Lot businesses.
The commitment deadline and the allocation of the loan are
expected the week of February 11.
A new $900 million asset-based revolving credit facility led
by Wells Fargo rounds out the refinancing loan.
The new $2.4 billion financing package will replace
SuperValu's existing $1.65 billion revolver and $846 million
term loan. The package will also refinance SuperValu's $490
million 7.5 percent bonds due November 2014.