Summary
The Kroger Co. announced an extension of the expiration dates for its previously disclosed exchange offers and consent solicitations concerning notes of Albertsons Companies, Inc. Effective immediately, the new expiration date for both the Exchange Offers and the Consent Solicitations has been moved from September 13, 2024, to September 17, 2024, at 5:00 p.m. New York City time. This move allows more time for stakeholders to consider the offers. The Exchange Offers enable the holders of Albertsons Companies, Inc. (ACI) notes to exchange their existing notes for new Kroger Notes and cash, amounting to a principal of up to approximately $7.44 billion. This initiative is accompanied by a Consent Solicitation, which seeks approval for proposed amendments to the ACI Notes indentures concerning those notes that have not yet received sufficient consents. As of September 11, 2024, the requisite consents for certain series of ACI Notes have been achieved, and relevant supplemental indentures have been executed. Notably, these amendments will only take effect upon the successful settlement of the Exchange Offers, which is anticipated to occur shortly following the new expiration date. Among the notes included in this announcement are several senior notes with varying principal amounts and acceptance rates. For example, the 3.250% Senior Notes totaled $711.4 million in valid tender, representing an acceptance rate of 94.85%. In total, various series of notes have been tendered, highlighting significant participation from stakeholders. Pursuant to these offers, holders can withdraw their tendered notes prior to the new expiration date, although the Exchange Offers and Consent Solicitations remain firmly subject to the completion of the merger with Albertsons Companies, in which ACI will become a wholly-owned subsidiary of Kroger. The successful closing of this merger is anticipated in the fourth quarter of 2024. This announcement underscores Kroger’s strategic efforts to consolidate its financial offerings amid significant operational changes. Interested parties are encouraged to review the terms outlined in the confidential offering memorandum dated August 15, 2024. Further information can be obtained by contacting Global Bondholder Services Corporation. In closing, Kroger’s proactive approach to extending the thresholds for these capital initiatives reflects the Company’s dedication to operational optimization as it moves forward in its anticipated merger with Albertsons. Stakeholders are urged to remain attentive to upcoming updates and extensions as the finalization of this merger materializes.
Original Source: www.prnewswire.com
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