) recently offered senior notes worth $400 million, due 2021, to
qualified institutional buyers. The company intends to use the
proceeds from these notes for the previously announced tender
offer of senior notes on May 02.
Earlier on May 2, the company had offered senior notes worth $300
million due on May 1, 2016. The senior notes carry an interest
rate of 8.00% and will be sold according to a modified "Dutch
Auction" tender offer. The procedure is expected to close on May
30, 2013. As of May 2, 2013, the company had $1.0 billion
aggregate principal amount of outstanding notes.
The senior note program will improve the company's liquidity
strength. Although the company's cash and cash equivalents as of
Feb 23, 2013 were $72.0 million, down from $155.0 million as of
Dec 1, 2012, its long-term debt and capital lease obligations
fell drastically to $2.8 billion as of Feb 23, 2013 from $6.2
billion as of Dec 1, 2012.
Supervalu posted adjusted loss per share of 14 cents for the
fourth quarter of fiscal 2013 ended Feb 23, 2013, compared with
earnings of 2 cents per share in the comparable quarter a year
ago. Total sales also dipped 2.3% to $3.9 billion in the quarter.
Supervalu has been adversely affected by the slow economic
recovery and low disposable income of U.S. consumers, which
resulted in cautious spending in fourth quarter of fiscal 2013.
The company streamlined some of its non-performing supermarkets
in order to optimize resources and improve business.
Very recently in March, 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 intended to streamline 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
SUPERVALU carries a Zacks Rank #3 (Hold).
Stocks in the retail wholesale sector that are performing well
and deserve a mention include
Haverty Furniture Companies Inc.
Etablissements Delhaize Fr
) carrying a Zacks Rank #1 (Strong Buy) and
The Kroger Co.
) carrying a Zacks Rank #2 (Buy).
DELHAIZE-LE (DEG): Free Stock Analysis Report
HAVERTY FURNIT (HVT): Free Stock Analysis
KROGER CO (KR): Free Stock Analysis Report
SUPERVALU INC (SVU): Free Stock Analysis
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