March 2013

FinalCut: Wells Fargo Provides ABL to Support SUPERVALU Cerberus Deal

ABF Journal illustrator Jerry Gonzalez shares his depiction of SUPERVALU’s deal to sell some of its grocery store chains to Cerberus Capital and its related $900 million facility led by Wells Fargo.



SUPERVALU announced a definitive agreement under which it will sell its Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market stores and related Osco and Sav-on in-store pharmacies to AB Acquisition, an affiliate of a Cerberus Capital Management-led investor consortium which also includes Kimco Realty, Klaff Realty, Lubert-Adler Partners and Schottenstein Real Estate Group, in a transaction valued at $3.3 billion.

In connection with the transactions, SUPERVALU said it has negotiated a new and fully underwritten $900 million asset-based revolving credit facility led by Wells Fargo and a $1.5 billion term loan secured by a portion of the company’s real estate and an equity pledge of Moran Foods, led by Goldman Sachs Bank USA, Credit Suisse, Morgan Stanley, Bank of America Merrill Lynch and Barclays.

The proceeds of these financings will be used to replace the existing $1.65 billion asset-based revolving credit facility, the existing $846 million term loan, and to call and refinance $490 million of 7.5 percent bonds scheduled to mature in November 2014.