) has announced the expiration of the senior notes offer worth
$300 million due on May 1, 2016. On May 2, 2013, Supervalu
commenced the sale of a portion of senior notes carrying an
interest rate of 8.00%. They were sold according to a modified
"Dutch Auction" tender offer. The company was able to tender
$373,053,000 in aggregate principal amount of the Notes as of May
30, 2013 midnight.
On May 20, 2013, Supervalu offered senior notes worth $400
million, due in 2021, to qualified institutional buyers. The
company intends to use the proceeds from the sale of these notes
for the previously announced tender offer of senior notes on May
The senior note program enhanced the company's liquidity.
Although Supervalu's cash and cash equivalents went down to $72.0
million as of Feb 23, 2013 from $155.0 million as of Dec 1, 2012,
its long-term debt and capital lease obligations decreased from
$6.2 billion as of Dec 1, 2012 to $2.8 billion as of Feb 23,
Supervalu has been adversely affected by the slow economic
recovery and low disposable income of the U.S. consumers, which
resulted in cautious spending during the quarter. The company
streamlined some of its non-performing supermarkets in order to
optimize resources and improve business.
On Mar 18, 2013, as a part of its broad-based strategic
alternatives, Supervalu sold Albertson's, Jewel-Osco, Acme,
Shaw's and Star Market chains, comprising a total of 877 stores,
to equity firm, Cerberus Capital Management LP, for $3.3 billion.
The company streamlined its operations in order to focus on
Save-A-Lot discount stores, as well as its smaller regional
chains - Cub, Farm Fresh, Shoppers, Shop 'n Save and
Currently, shares of Supervalu carry a Zacks Rank #3 (Hold).
Stocks in the retail wholesale sector that are performing well
and deserve a mention include
Fortune Brands Home & Security Inc.
Haverty Furniture Companies Inc.
Green Mountain Coffee Roasters Inc.
) carrying a Zacks Rank #1 (Strong Buy) and
The Buckle Inc.
) carrying a Zacks Rank #2 (Buy).
BUCKLE INC (BKE): Free Stock Analysis Report
FORTUNE BRD H&S (FBHS): Free Stock Analysis
GREEN MTN COFFE (GMCR): Free Stock Analysis
HAVERTY FURNIT (HVT): Free Stock Analysis
SUPERVALU INC (SVU): Free Stock Analysis
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