Aggregate Principal Amount:
|
$1,000,000,000 (upsized from $500,000,000) | |
Title of Securities:
|
8.000% Senior Notes due 2016 | |
Final Maturity Date:
|
May 1, 2016 | |
Public Offering Price:
|
97.000% | |
Gross Proceeds:
|
$970,000,000 | |
Price to Underwriters:
|
94.400% | |
Net Proceeds to Issuer after
Underwriting Discount and
Estimated Expenses:
|
$943,144,200 | |
Coupon:
|
8.000% | |
Yield to Maturity:
|
8.579% | |
Benchmark Treasury:
|
2.625% UST due April 30, 2016 | |
Spread to Benchmark Treasury:
|
+ 587 basis points | |
Benchmark Treasury Yield:
|
2.71% | |
Interest Payment Dates:
|
May 1 and November 1 | |
First Interest Payment Date:
|
November 1, 2009 | |
Record Dates:
|
April 15 and October 15 | |
Redemption Provisions: |
||
Make-Whole Call:
|
At any time at a discount rate equal to the Treasury Rate plus 50 basis points |
Use of Proceeds:
|
SUPERVALU intends to use the net proceeds of the offering to fund all or a portion of the purchase price of its 7.875% Notes due August 1, 2009, the 6.95% Notes due August 1, 2009 issued by its wholly owned subsidiary, New Albertsons, Inc., and the 8.35% Senior Notes due May 1, 2010 issued by New Albertsons, Inc. (together, the Target Notes) that are tendered and accepted by SUPERVALU for purchase in its offer to purchase for cash the Target Notes (the Offer), which SUPERVALU commenced on April 30, 3009, including the payment of accrued interest and any applicable early tender premium. | |
To the extent that there are net proceeds remaining, or if the Offer is not consummated, SUPERVALU intends to use the net proceeds for general corporate purposes, including the repayment of debt, whether at maturity, through open market purchases, privately negotiated transactions or otherwise. | ||
Underwriters:
|
Credit Suisse Securities (USA) LLC, Banc of America Securities LLC, Citigroup Global Markets Inc., RBS Securities Inc., J.P. Morgan Securities Inc., Morgan Stanley & Co. Incorporated, UBS Securities LLC, U.S. Bancorp Investments, Inc. and The Williams Capital Group, L.P. | |
Trade Date:
|
April 30, 2009 | |
Settlement Date:
|
May 7, 2009 (T+5) | |
CUSIP and ISIN Numbers:
|
CUSIP: 868536 AT0 ISIN: US868536AT00 |
|
Original Issue Discount:
|
The notes are being issued with more than de minimis OID for U.S. federal income tax purposes. Accordingly, holders will be required to include the OID in income as ordinary interest income as it accrues. See Material U.S. Federal Income Tax Considerations U.S. Holders Original Issue Discount in the preliminary prospectus. |
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