SUPERVALU entered into a definitive agreement to sell its Save-A-Lot business for $1.365 billion in cash to an affiliate of Onex, a Canadian company. In connection with the sale, SUPERVALU and Save-A-Lot will enter into a five-year professional services agreement. The sale of Save-A-Lot is expected to be completed by January 31, 2017, subject to regulatory approvals and other customary closing conditions.

In May, Goldman Sachs and Barclays acted as joint lead bookrunners and joint lead arrangers on an amendment of SUPERVALU’s existing $1.5 billion senior secured term loan agreement. The company announced at that time it was seeking to sell Save-A-Lot.

SUPERVALU expects to use the net proceeds from the sale to prepay at least $750 million against its outstanding term loan balance. The company intends to use the remaining net sale proceeds to further reduce debt and improve its capital structure and to fund corporate and growth initiatives.

Barclays Capital and Greenhill & Co. acted as financial advisors to SUPERVALU, and Wachtell, Lipton, Rosen & Katz served as its legal advisor.

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Goldman Sachs, Barclays Arrange SUPERVALU $1.5B Loan Amendment