...Potential Save-A-Lot Spinoff: SUPERVALU Inc. (SVU) announced in July 2015 it was exploring a potential spinoff of its Save-A-Lot segment as a publicly traded company. A Form 10 was filed for Save-A-Lot in early January 2016 and management views the first half of fiscal 2017 as a possible completion time frame. Fitch anticipates market conditions could also influence the timing of the potential spinoff. Save-A-Lot represented 27% of SVU's total EBITDA in fiscal 2015 and had pro forma sales of $4.6 billion and EBITDA of $221 million. Spinoff Neutral to Rating: Based on Fitch's scenario analysis, SVU's adjusted debt/EBITDAR would be around 5.0x pro forma for the Save-A-Lot spinoff, assuming no changes in debt levels, versus 4.0x at Dec. 5, 2015. Save-A-Lot's capital structure has not been determined. However, if Save-A-Lot incurs some debt in conjunction with a spinoff and dividends $100 million¡ $750 million of proceeds to SVU, which uses the cash to pay down debt, SVU's adjusted leverage...
