Supervalu Pays $213 Million to Liquid Yield Option Note Holders
MINNEAPOLIS -- Supervalu here said it has paid approximately $213 million in cash to holders of liquid yield option notes due 2031 that were put to the retailer/distributor as of Oct. 1, 2006. The company said the move represents about 80 percent of the outstanding notes.
Under the terms of the notes, holders could require Supervalu to purchase all or a portion of their notes on Oct. 1, 2006 at a purchase price equal to the accreted value of the notes, which includes accrued and unpaid cash interest.
From there, Supervalu may redeem all or a portion of the notes for cash at any time for a purchase price equal to the sum of the issue price, plus accrued original issue discount as of the redemption date.
In other news, the grocer is closing another Pittsburgh-area corporate Shop 'n Save store in the Pullman Plaza shopping center in Butler, Pa., on or around Nov. 12. The move will affect 77 workers and is part of Supervalu's previously announced plans to sell 20 corporate-owned Shop 'n Save stores in the Pittsburgh market.
Under the terms of the notes, holders could require Supervalu to purchase all or a portion of their notes on Oct. 1, 2006 at a purchase price equal to the accreted value of the notes, which includes accrued and unpaid cash interest.
From there, Supervalu may redeem all or a portion of the notes for cash at any time for a purchase price equal to the sum of the issue price, plus accrued original issue discount as of the redemption date.
In other news, the grocer is closing another Pittsburgh-area corporate Shop 'n Save store in the Pullman Plaza shopping center in Butler, Pa., on or around Nov. 12. The move will affect 77 workers and is part of Supervalu's previously announced plans to sell 20 corporate-owned Shop 'n Save stores in the Pittsburgh market.