SUPERVALU Completes Sale and Leaseback of Seven Distribution Centers
May 09 2018 - 5:18PM
Business Wire
SUPERVALU INC. (NYSE: SVU) today announced it has completed the
sale and leaseback of seven of its distribution centers as part of
the previously announced agreement to sell eight of its owned
warehouses (Link: SUPERVALU Announces Sale Leaseback Agreement).
With the sale of these seven facilities now complete, SUPERVALU has
entered into lease agreements for each facility for an initial term
of 20 years with five five-year renewal options. The sale and
leaseback of the eighth property is expected to be completed by
October as originally intended.
The sale of all eight facilities represents approximately 5.8
million square feet with an aggregate purchase price, excluding
closing costs and taxes, of approximately $483 million. Net
proceeds from the sales will be used to reduce outstanding debt
including, and as required, the payoff of a mortgage related to one
of the properties sold and a mandatory prepayment of SUPERVALU’s
secured term loan. SUPERVALU also intends to use net proceeds for a
partial redemption of its outstanding senior unsecured notes due in
2021.
About SUPERVALU INC.
SUPERVALU INC. is one of the largest grocery wholesalers and
retailers in the U.S. with annual sales of approximately $14
billion. SUPERVALU serves customers across the United States
through a network of 3,437 stores composed of 3,323 wholesale
primary stores operated by customers serviced by SUPERVALU’s food
distribution business and 114 traditional retail grocery stores in
continuing operations operated under three retail banners in three
geographic regions (store counts as of February 24, 2018).
Headquartered in Minnesota, SUPERVALU has approximately 23,000
employees (in continuing operations). For more information about
SUPERVALU visit www.supervalu.com.
Forward Looking
Statements
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995.
Except for the historical and factual information, the matters
set forth in this news release, particularly SUPERVALU’s
expectations, guidance, or future operating results, and other
statements identified by words such as "estimates" "expects,"
"projects," "plans," "intends," "outlook" and similar expressions
are forward-looking statements within the meaning of the "safe
harbor" provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially,
including the ability to satisfy the closing conditions and close
the additional sale and leaseback on a timely basis or at all, the
possibility that modifications to the terms of the transactions may
be required, business disruption, and other risk factors relating
to the business or industry as detailed from time to time in
SUPERVALU's reports filed with the SEC. You should not place undue
reliance on these forward-looking statements, which speak only as
of the date of this news release. For more information, see the
risk factors described in SUPERVALU’S Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q and other filings with the SEC.
Unless legally required, SUPERVALU undertakes no obligation to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180509006593/en/
SUPERVALU INC.Investor
Contact:Steve Bloomquist,
952-828-4144steve.j.bloomquist@supervalu.comorMedia Contact:Jeff Swanson,
952-903-1645jeffrey.s.swanson@supervalu.com
Supervalu (NYSE:SVU)
Historical Stock Chart
From Apr 2024 to May 2024
Supervalu (NYSE:SVU)
Historical Stock Chart
From May 2023 to May 2024