Ingles Markets, Incorporated Announces Pricing of its Senior Notes Offering

Rhea-AI Summary

Ingles Markets, Inc. (NASDAQ: IMKTA) has announced a private offering of $350 million in 4.00% Senior Notes due 2031. The net proceeds will be used to redeem existing 5.75% Senior Notes due 2023, repay outstanding credit facilities, and cover related expenses. The offering is expected to close on June 17, 2021, pending customary closing conditions. The Notes will not be registered under U.S. securities laws and are offered only to qualified institutional buyers and certain non-U.S. persons.

Positive

• Issuance of $350 million in 4.00% Senior Notes may strengthen the company's capital structure.
• Funds raised will be used to redeem higher-interest 5.75% Senior Notes, potentially reducing interest expenses.

Negative

• The company is increasing its debt load with the new offering.
• There are risks associated with non-registration of the Notes under U.S. securities laws, limiting investor access.

Ingles Markets, Incorporated (“Ingles” or the “Company”) (NASDAQ: IMKTA) today announced the pricing of its previously announced private offering of $350.0 million aggregate principal amount of 4.00% Senior Notes due 2031 (the “Notes”). The Company intends to use the net proceeds from the offering of the Notes to redeem in full the Company’s issued and outstanding 5.75% Senior Notes due 2023 (the “2023 Notes”), repay the outstanding balance under its existing credit facility, and pay related fees and expenses. The Company expects the offering of the Notes to close on June 17, 2021, subject to customary closing conditions.

The Notes have not been, and will not be, registered under the Securities Act of 1933, as amended, or any other securities laws, and the Notes may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from registration requirements. The Notes are being offered only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act and to certain non-U.S. persons outside the United States in accordance with Regulation S under the Securities Act.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. This press release is not a notice of redemption for the 2023 Notes.

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements include, but are not limited to, statements concerning the Company’s plans, objectives, expectations and intentions and other statements that are not historical or current fact. The words “expect,” “anticipate,” “intend,” “plan,” “likely,” “goal,” “believe,” “seek,” “will,” “may,” “would,” “should” and similar expressions are intended to identify forward-looking statements. These views involve risks and uncertainties that are difficult to predict and, accordingly, the Company’s actual results may differ materially from the results discussed in its forward-looking statements. The Company’s forward-looking statements contained herein speak only as of the date of this press release. Factors or events the Company cannot predict, including those described in the risk factors contained in its filings with the Securities and Exchange Commission, may cause the Company’s actual results to differ from those expressed in forward-looking statements. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be achieved, and the Company undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise.

Ingles Markets, Incorporated is a leading grocer with operations in six southeastern states. Headquartered in Asheville, North Carolina, the Company operates 198 supermarkets. In conjunction with its supermarket operations, the Company operates neighborhood shopping centers, most of which contain an Ingles supermarket. The Company also owns a fluid dairy facility that supplies Ingles supermarkets and unaffiliated customers. To learn more about Ingles Markets visit ingles-markets.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210614005795/en/

FAQ

What are the details of Ingles Markets' recent private offering of Senior Notes?

Ingles Markets announced a private offering of $350 million in 4.00% Senior Notes due 2031 to redeem existing 5.75% Senior Notes and repay credit facilities. The offering is expected to close on June 17, 2021.

How will Ingles Markets use the proceeds from the Senior Notes offering?

The proceeds will be used to redeem the 5.75% Senior Notes due 2023, repay outstanding credit, and cover related fees and expenses.

What is the risk associated with the new Senior Notes issued by Ingles Markets?

The Notes are not registered under U.S. securities laws, which may restrict their sale and limit investor access.

When is the expected closing date for Ingles Markets' Senior Notes offering?

The offering is expected to close on June 17, 2021, subject to customary closing conditions.