MINNEAPOLIS--(BUSINESS WIRE)--May 9, 2018--
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/
Source: SUPERVALU INC.
Jeff Swanson, 952-903-1645