Daily News: April 18, 2014

Wells, Others Arrange SuperValu $1B ABL Facility Amendment

SuperValu announced it successfully completed the repricing, amendment and extension of its existing $1 billion asset-based revolving credit facility, which is secured by the company’s inventory, credit card and certain other receivables and certain other assets.

Wells Fargo, U.S. Bank, Rabobank, Goldman Sachs, Credit Suisse, Morgan Stanley, Barclays and Bank of America Merrill Lynch acted as joint lead arrangers and joint bookrunners on the amendment.

The amendment reduces the facility’s interest rates to LIBOR plus 1.50 percent to 2% and prime plus 0.50% to 1%, depending on utilization. The amendment also eliminates the springing maturity provision that would have accelerated the revolving credit facility’s maturity to 90 days prior to May 1, 2016 if more than $250 million of the company’s 8% senior notes remained outstanding as of that date. The springing maturity provision was replaced with a springing reserve provision that calls for a reserve to be placed against availability under the facility in the amount of any outstanding material indebtedness (as defined in the credit facility) that is due within 30 days of the date the reserve is established.

In addition, the amendment expands the ability to increase the company’s $1.5 billion senior secured term loan facility, subject to a secured leverage test, by up to $500 million (previously $250 million), subject to identifying term loan lenders or other institutional lenders willing to provide the additional loans and the satisfaction of certain terms and conditions. The amendment also contains modified covenants to give the Company additional strategic and operational flexibility and includes certain other non-material changes. Additionally, the maturity date of the revolving credit facility was extended by eleven months to February 2019.

SuperValu is a grocery wholesaler and retailer in the U.S. with annual sales of approximately $17 billion.

Previously on abfjournal: Bloomberg: Supervalu Said to Seek Lower Term Loan Rate, January 23, 2014