Albertsons Companies Inc. Announces Pricing of Senior Notes Offering

Albertsons Companies plans to issue $600 million worth of 6.250% senior notes due in 2033. The offering involves not only the parent company but also its subsidiaries, including Safeway Inc., New Albertsons L.P., Albertson’s LLC, and Albertsons Safeway LLC, all of which will act as co-issuers of the notes. The closing of this offering is anticipated to take place on or about March 11, 2025, pending the fulfillment of customary closing conditions.

The proceeds from this bond issuance will be utilized in two significant ways:

This refinancing effort is designed to improve Albertsons' overall financial health by reducing interest expenses associated with its existing debt.

The senior notes are being offered to a select group of investors, specifically those believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933. Furthermore, the offering is compliant with Regulation S for international investors. It is important to note that these notes have not been registered under the Securities Act, which limits their offer and sale within the United States unless a valid exemption is applicable.

The company explicitly states that this press release does not constitute an offer to sell or a solicitation of offers to buy the notes in any jurisdiction where such actions would contravene local laws without proper registration or qualification.

Albertsons is recognized as a leading food and drug retailer in the United States, operating a vast network of retail stores. As of November 30, 2024, the company managed 2,273 retail food and drug stores, including 1,732 pharmacies and 405 associated fuel centers, alongside its distribution centers and manufacturing facilities. The company operates under more than 20 well-known banners, such as Safeway, Vons, and Jewel-Osco, serving customers across 34 states and the District of Columbia.

In 2023, Albertsons Companies demonstrated its commitment to community support by contributing over $350 million in food and financial assistance, including significant contributions through its Nourishing Neighbors Program aimed at combating hunger in local communities.

The press release includes forward-looking statements that outline Albertsons' expectations and intentions regarding the offering and its future financial positioning. These statements are accompanied by cautionary notes, highlighting that actual results may vary due to various factors beyond the company's control.

The company emphasizes that it does not undertake any obligation to update or revise forward-looking statements unless mandated by law. Investors are encouraged to consider the risks associated with such statements in light of the comprehensive risk factors disclosed in the company’s filings with the SEC.

Albertsons Companies Inc.'s strategic move to issue senior notes reflects its ongoing efforts to manage its financial obligations effectively. By refinancing existing debt, the company aims to enhance its financial stability as it continues to serve its customers across a wide array of retail formats. The upcoming closing of this offering will be closely watched by market participants and analysts alike, as it could significantly impact the company’s financial landscape going forward.