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SUPERVALU Completes Sale and Leaseback of Seven Distribution Centers

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.

Source: SUPERVALU INC.

SUPERVALU INC.
Investor Contact:
Steve Bloomquist, 952-828-4144
steve.j.bloomquist@supervalu.com
or
Media Contact:
Jeff Swanson, 952-903-1645
jeffrey.s.swanson@supervalu.com