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SUPERVALU Reprices, Amends $1B Facility With Wells Fargo, Others

February 05, 2016, 08:02 AM
Filed Under: Retail

SUPERVALU INC.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.

Wells Fargo, U.S. Bank, Rabobank and BMO Capital Markets acted as Joint Lead Arrangers and Joint Bookrunners on the amendment.

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.

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.

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