$3 Billion Package for Retail Food Supermarkets Owner

Strategic Insights -

As of January 26, 2000, a notable retail food supermarkets owner has secured a substantial $3 billion loan package to support its operations. The loan has been structured into two parts: a $2.5 billion term loan and a $500 million revolving credit facility. This financing is aimed at covering acquisition costs, paying fees and expenses, refinancing/retiring bank debt, and general corporate purposes.

Key Takeaways:

  • The loan package is valued at $3 billion, with a $2.5 billion term loan and a $500 million revolving credit facility.
  • The term loan has a maturity date of January 24, 2001, while the revolving credit facility has a maturity date of January 26, 2005.
  • The pricing for both parts of the loan is based on the Libor rate, with adjustments made according to the company's ratings. The Libor + 225 bps rate applies initially, and it can be adjusted to as low as Libor + 50 bps if the company achieves a certain rating level.
  • Commitment fees range from 9 bps to 50 bps, depending on the company's rating level.
  • Participating lenders include notable institutions such as Morgan Guaranty Trust, BankAmerica, Citibank, and others.
  • The loan is intended to support the company's acquisition financing, pay fees and expenses, refinance/retire bank debt, and general corporate purposes.

Statistics:

  • Total loan package: $3 billion
  • Term loan amount: $2.5 billion
  • Revolving credit facility amount: $500 million
  • Initial pricing: Libor + 225 bps
  • Maturity date for term loan: January 24, 2001
  • Maturity date for revolving credit facility: January 26, 2005

Sources:

  • Morgan Guaranty Trust
  • BankAmerica
  • Citibank
  • Wachovia Bank
  • Bank of New York
  • Bank One
  • BBL International
  • Credit Agricole Indosuez
  • Deutsche Bank
  • First Union
  • Fortis Finance
  • Industrial Bank of Japan
  • Rabobank Nederland
  • SunTrust Banks
  • CoBank
  • Dai-Ichi Kangyo Bank
  • Fuji Bank
  • Banque Paribas
  • Branch Banking
  • CIBC
  • Credit Commercial de France
  • Fleet National Bank
  • Paribas
  • Bank of Tokyo-Mitsubishi
  • Union Bank of California