Milbank LLP advised the initial purchasers in connection with an upsized $1.5 billon senior notes offering by Albertsons Companies, Inc., Safeway Inc., New Albertsons L.P., Albertson’s LLC and Albertsons Safeway LLC. The dual tranche notes offering consists of Albertsons’ $700 million aggregate principal amount of 5.500% senior notes due 2031 and $800 million aggregate principal amount of 5.750% senior notes due 2034. Albertsons intends to use the proceeds from the offering to redeem in full its $750 million outstanding 3.250% senior notes due 2026 and repay a portion of its asset-based revolving credit agreement borrowings.
Albertsons Companies is one of the largest food and drug retailers in the United States, with over 2,200 stores in 35 states and the District of Columbia. Its well-known banners include Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci's Food Lovers Market. Albertsons Companies supports its stores with 22 distribution centers and 19 manufacturing plants.
The Milbank deal team was led by Corporate Finance and Securities partner and practice group leader Jonathon Jackson and partner Antonio Diaz-Albertini, with associates Abir Varma, Devarshi Mukhopadhyay and Christopher Puglisi and law clerk Lauren Sturm. The deal team included Tax partner Andrew Walker and associate Blake Rocks.
