FTI Consulting served as restructuring advisor for Save A Lot, a U.S. discount grocer, which successfully completed the recapitalization of its business and delverged its balance sheet. In addition, Alix Partners served as restructuring advisor to Save A Lot’s term loan lenders.
Under the terms of the agreement, which was supported unanimously by all constituents, Save A Lot completed debt-for-equity and debt-for-debt exchanges that eliminated approximately $500 million in debt and provided an infusion of $350 million in new capital from a combination of new and existing lenders to support the company’s operations and acceleration of its transformation plan.
“With the completion of this recapitalization, we are moving forward with a substantially stronger financial foundation as we continue serving our customers and executing our transformation plan,” Kenneth McGrath, CEO of Save A Lot, said. “Our ability to achieve this outcome through a fully consensual and out-of-court agreement is a significant achievement and reflects the confidence of our new owners and lenders in our business model and long-term growth prospects. We thank our vendors and retail partners for their trust and support throughout this process and we look forward to continuing to work closely with them into the future.
“As our nation is impacted by the COVID-19 pandemic, I cannot say enough about the strength and resilience of our retail partners and our team members. These incredible people are on the front lines every day, and we thank them for their unwavering dedication to serving our customers and helping our communities manage through this unprecedented situation. We understand the critical role our company plays as our communities rely on us now more than ever to provide food and other essential, high quality products at low prices.”
PJ SOLOMON served as financial advisor to Save A Lot and Latham & Watkins served as legal counsel. Halsey Lane Holdings served as an advisor to the board of directors of Save A Lot. Davis Polk & Wardwell LLP served as legal counsel to Save A Lot’s term loan lenders.
Founded in 1977, Save A Lot is a discount grocery store chain with more than 1,100 corporate and licensed stores in 33 states and 14 wholesale distribution centers.