BI-LO $700 million asset-based revolver launch expected Feb. 7

By Sara Rosenberg

New York, Jan. 30 - BI-LO LLC is tentatively scheduled to hold a bank meeting on Feb. 7 to launch its proposed $700 million senior secured asset-based revolving credit facility, according to a market source.

Citigroup Global Markets Inc. and Deutsche Bank Trust Company Americas are the lead banks on the deal and have each committed to provide 50% of the revolver.

Proceeds will be used to help fund the acquisition of Winn-Dixie Stores Inc. for $9.50 in cash per share.

Up to $300 million of the revolver can be used to fund the transaction and an additional $140 million can be used to back stop outstanding letters of credit at closing.

Other funds for the acquisition will come from $340.8 million of equity.

Closing is expected in the next few months, subject to the approval of Winn-Dixie shareholders and other customary conditions, including expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Greenville, S.C.-basaed BI-LO and Jacksonville, Fla.-based Winn-Dixie are operators of supermarkets.

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