Albertsons to launch repricing of $6 billion in term loans on Tuesday

By Sara Rosenberg

New York, Nov. 28 – Albertsons Cos. LLC will hold a lender call at 10:30 a.m. ET on Tuesday to launch $6,013,000,000 in term loans (Ba3/BB), according to a market source.

A Credit Suisse Securities (USA) LLC-led group is leading the transaction.

The debt consists of a $3,271,000,000 term loan B-4 due August 2021, a $1,142,000,000 term loan B-5 due December 2022 and a $1.6 billion term loan B-6 due June 2023, the source said.

Price talk on the term loan B-4 is Libor plus 275 basis points, talk on the term loan B-5 is Libor plus 300 bps and talk on the term loan B-6 is Libor plus 300 bps, the source continued.

All of the term loans are talked with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

Proceeds will be used to reprice the existing term loan B-4 down from Libor plus 350 bps with a 1% Libor floor, and the existing term loan B-5 and term loan B-6 down from Libor plus 375 bps with a 1% Libor floor.

Commitments are due at 5 p.m. ET on Thursday, the source added.

Albertsons is a Boise, Idaho-based food and drug retailer.

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