), one of the largest grocery chains in the US, has completed its
debt financing transactions worth around $2.5 billion, which was
announced in July.
During its first quarter fiscal 2013 conference call held in
July, Supervalu had announced plans to replace its senior credit
facility with an asset-based lending facility and term loan secured
by a portion of the company's real estate in order to improve its
financial flexibility. Recently, Supervalu replaced its existing
debt obligations with a new five-year $1.65 billion asset-based
revolving credit facility and a new six-year $850 million term
While the revolving credit facility is secured by the company's
inventory, credit card receivables and certain other assets, term
loan is against a portion of the company's real estate and
equipment. These debt instruments replace the company's current
debt obligations that comprise a $1.5 billion revolving credit
facility (scheduled to mature in April 2015; a $574 million term
loan (scheduled to mature in October 2015); and a $446 million term
loan (scheduled to mature in April 2018).
Supervalu, based in Eden Prairie, Minnesota, runs its retail
operations under various banners, such as Albertsons, Save-A-Lot,
Shaw's Supermarkets, Jewel-Osco, Acme Markets, Shoppers Food &
Pharmacy, Cub Foods, Farm Fresh, Lucky, Shop 'n Save, Scott's, Star
Markets, Bristol Farms, bigg's, Hornbacher's, and Sunflower Market.
The company operates through three retail food store formats:
combination stores, food stores, and limited assortment food
stores. The combination stores refer to the combination of food and
We currently have a Neutral recommendation on Supervalu. The
stock carries a Zacks #4 Rank (a short-term 'Sell rating).
SUPERVALU INC (SVU): Free Stock Analysis Report
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