Bulletin: Albertsons Cos. Inc. Ratings Unaffected By Floating Rate Note Issuance And Adjustments To Acquisition Plan

NEW YORK (S&P Global Ratings) June 5, 2018--S&P Global Ratings said today that its ratings on Albertsons Cos. Inc. (B/Stable/--) are unaffected by the company's launch of floating rate senior secured notes due 2023 and corresponding adjustments to its pro forma capital structure for its announced Rite Aid acquisition. Albertsons' latest plan is for only $500 million in new senior secured debt to launch this week, down from the $1.2 billion secured bridge loan that was originally contemplated earlier this year. It also includes a $1.1 billion draw on its $5 billion asset-based (ABL) revolver, up from a previously anticipated $900 million and an upsized ABL first in last out (FILO) term loan to $1.5 billion from $1.2 billion. This

...NEW YORK (S&P Global Ratings) June 5, 2018--S&P Global Ratings said today that its ratings on Albertsons Cos. Inc. (B/Stable/--) are unaffected by the company's launch of floating rate senior secured notes due 2023 and corresponding adjustments to its pro forma capital structure for its announced Rite Aid acquisition. Albertsons' latest plan is for only $500 million in new senior secured debt to launch this week, down from the $1.2 billion secured bridge loan that was originally contemplated earlier this year. It also includes a $1.1 billion draw on its $5 billion asset-based (ABL) revolver, up from a previously anticipated $900 million and an upsized ABL first in last out (FILO) term loan to $1.5 billion from $1.2 billion. This results in slightly less cash on the balance sheet than we originally forecast but is leverage neutral, with pro forma adjusted debt to EBITDA still expected to remain above 6x in the coming year. The new 2023 floating rate notes are rated '##-', with a '1' recovery...

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