Daily News: June 9, 2017

Goldman Sachs Agents $840MM SUPERVALU Refi


SUPERVALU completed the refinancing of its senior secured term loan credit agreement with a syndicate of banks led by Goldman Sachs as administrative agent.

Goldman Sachs Bank USA, RBC Capital Markets, Barclays, Credit Suisse, BMO Capital Markets and Citigroup acted as joint lead book-runners and joint lead arrangers while Wells Fargo Securities, U.S. Bank, Rabobank and Natixis Securities acted as co-managers on the refinancing.

The new seven-year senior secured term loan credit agreement provides for an initial term loan facility of $525 million, which was used to refinance outstanding loans under the prior term loan credit agreement, and a delayed draw term loan facility of $315 million which is expected to be drawn down in full for the purpose of consummating the acquisition of Unified Grocers.

Borrowings under this new term loan credit agreement will bear interest at the rate of LIBOR + 3.50% with a floor on LIBOR set at 1.00%, reflecting a 1.00% rate reduction compared to the prior term loan credit agreement for LIBOR based loans. The new term loan credit agreement will mature on June 8, 2024.

However, if the company has not repaid its 6.75% senior notes due June 1, 2021 or its 7.75% senior notes due November 15, 2022 by the date that is 91 days prior to the respective maturity date of such notes, the term loan will mature on the date that is 91 days prior to the maturity date of such notes.

SUPERVALU is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $12 billion.