Albertsons Companies, Inc. Announces Proposed Senior Notes Offering

BOISE, ID, Aug. 11, 2020 (GLOBE NEWSWIRE) -- Albertsons Companies, Inc. (NYSE: ACI) (the "Company") today announced its intention to offer $1,250 million in aggregate principal amount of new senior notes due 2026 and new senior notes due 2029 (collectively, the "New Notes"). The Company and its subsidiaries, Safeway Inc., New Albertsons L.P. and Albertson's LLC, will be co-issuers of the New Notes.

The Company intends to use the net proceeds from the offering, together with approximately $50 million of cash on hand, to (i) fund the redemption (the "Redemption") of its outstanding 6.625% Senior Notes due 2024 (the "Existing 2024 Notes") and (ii) pay fees and expenses related to the Redemption and the issuance of the New Notes.

Pursuant to the terms of the indenture governing the Existing 2024 Notes, the Company will issue a conditional notice of redemption to redeem the outstanding Existing 2024 Notes. The Redemption will be conditional upon successful completion of the offering of the New Notes.

The New Notes will be offered in the United States to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to persons outside the United States in compliance with Regulation S under the Securities Act. The New Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the New Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Albertsons Companies

Albertsons Companies is a leading food and drug retailer in the United States. As of June 20, 2020, the Company operated 2,252 retail food and drug stores with 1,726 pharmacies, 402 associated fuel centers, 22 dedicated distribution centers and 20 manufacturing facilities. The Company operates stores across 34 states and the District of Columbia under 20 well-known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen and Carrs. The Company is committed to helping people across the country live better lives by making a meaningful difference, neighborhood by neighborhood. In 2019 alone, along with the Albertsons Companies Foundation, the Company gave $225 million in food and financial support. In 2020, the Company made a $53 million to community hunger relief efforts and a $5 million commitment to organizations supporting social justice. These efforts have helped millions of people in the areas of hunger relief, education, cancer research and treatment, social justice and programs for people with disabilities and veterans' outreach.