Heritage Grocers sets Monday lender call to pitch $460 million incremental term loan

By Paul A. Harris

Portland, Ore., June 9 – Heritage Grocers Group (HGG) scheduled a lender call at 1 p.m. ET on Monday to launch a $460 million incremental term loan B, according to a market source.

The deal comes to market via a lender group led by RBC Capital Markets.

On Friday the Hispanic-focused specialty grocer reached an agreement to acquire El Rancho Supermercado, which will provide HGG with entry into the strategically important and high growth Texas market, the source said.

El Rancho Supermercado, based in Garland, Tex., has merchandising and customer profiles that are almost identical to those of HGG, the source added.

HGG, with headquarters in California, was formed in the merger of Tony's Fresh Market and Cardenas Market. The company, which has 85 stores in California, Nevada, Arizona and Illinois, will add 28 more stores – 27 in Texas and one in Kansas – with the El Rancho acquisition.

HGG has a $433 million term loan B outstanding that is priced at SOFR+CSA plus 675 basis points and matures on Aug. 1, 2029.

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