Milbank LLP advised the initial purchasers in connection with an upsized $2.1 billion senior notes offering by Albertsons Companies, Inc., Safeway Inc., New Albertsons L.P., Albertsons LLC and Albertsons Safeway LLC. The dual tranche notes offering consists of Albertsons’ $1.2 billion aggregate principal amount of new 5.625% senior notes due 2032 and $900 million aggregate principal amount of Albertsons’ additional 5.750% senior notes due 2034. Albertsons intends to use the proceeds from the offering to redeem in full its $1.35 billion outstanding 4.625% senior notes due 2027 and its $750 million outstanding 5.875% senior notes due 2028.
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 facilities.
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 Mukhopadhya and Nishkarsh Jakhar and law clerk Lauren Sturm. The deal team also included Tax partner Andrew Walker and associate Michelle Song.
