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Supervalu Inc. has successfully completed two debt financing transactions totaling $2.5 billion.
“The closing of these financings eliminate certain prior restrictive financial covenants and will provide Supervalu with more financial flexibility as we execute our business turnaround,” said Sherry Smith, executive VP and CFO.
A new five-year $1.65 billion asset-based revolving credit facility, secured by the company’s inventory, credit card receivables and certain other assets, has been set up through Wells Fargo, U.S. Bank, Barclays and Credit Suisse. Additionally, Credit Suisse and Barclays have arranged a new six-year, $850 million term loan, secured by a portion of Supervalu’s real estate and equipment. These obligations replace senior secured credit facilities slated to mature between 2015 and 2018.
Minneapolis-based Supervalu Inc. operates 4,400 stores composed of 1,101 traditional retail stores, including 798 in-store pharmacies; 1,336 hard discount stores, of which 939 are operated by licensee owners; and 1,950 independent stores serviced primarily by the company’s food distribution business.