Supervalu Completes Sale, Leaseback of Distribution Centers
Supervalu 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.
With the sale of the seven facilities finalized, Supervalu has entered 20-year lease agreements for each location, with five five-year renewal options. The sale and leaseback of the eighth facility is expected to be completed by October.
The sale of all eight facilities represents about 5.8 million square feet with an aggregate purchase price, excluding closing costs and taxes, of about $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. The wholesaler also intends to use net proceeds for a partial redemption of its outstanding senior unsecured notes due in 2021.