Bloomberg reported that Supervalu set the rate it will pay on $2.4 billion of loans to support the sale of five supermarket chains to a Cerberus Capital Management led investor group.
Bloomberg said, according to a person with knowledge of the matter, a six-year, $1.5 billion term loan, will pay interest at 5.75% more than the LIBOR with a 1.25% minimum. According to Bloomberg, the person said Supervalu may sell the debt at 98.5 cents on the dollar.
Bloomberg noted that the financing also includes a $900 million ABL revolver that will begin paying interest at 2% more than LIBOR, according to a regulatory filing.
To read the entire Bloomberg story, click here.
Previously on abfjournal.com: