Kroger Announces Results of Early Participation in Exchange Offers and Consent Solicitations for Albertsons Companies, Inc. Notes and Certain Amendments to the Exchange Offers and Consent Solicitations
Kroger (NYSE:KR) announced the results of early participation in its exchange offers and consent solicitations for Albertsons Companies, Inc. (NYSE:ACI) notes. As of August 28, 2024, $6,819,427,000 aggregate principal amount of ACI Notes have been validly tendered, representing approximately 91.64% of the total aggregate ACI Notes outstanding. Kroger has received the requisite consents for several series of ACI Notes to adopt proposed amendments to their governing indentures.
Kroger is waiving the condition requiring requisite consents for each series and plans to accept all validly tendered ACI Notes. The company has amended the exchange consideration to $1,000 principal amount of Kroger Notes for each $1,000 principal amount of ACI Notes tendered. The exchange offers will expire on September 13, 2024, unless extended or terminated earlier.
Kroger (NYSE:KR) ha annunciato i risultati della partecipazione anticipata alle sue offerte di scambio e alle sollecitazioni di consenso per i titoli di Albertsons Companies, Inc. (NYSE:ACI). A partire dal 28 agosto 2024, $6.819.427.000 di importo principale aggregato di titoli ACI sono stati validamente offerti, rappresentando circa il 91,64% del totale dei titoli ACI ancora in circolazione. Kroger ha ricevuto i consensi necessari per diverse serie di titoli ACI per adottare le modifiche proposte ai loro atti normativi.
Kroger sta rinunciando alla condizione che richiede i consensi necessari per ciascuna serie e prevede di accettare tutti i titoli ACI validamente offerti. L'azienda ha modificato il corrispettivo di scambio a $1.000 di importo principale di titoli Kroger per ogni $1.000 di importo principale di titoli ACI offerti. Le offerte di scambio scadranno il 13 settembre 2024, a meno che non vengano prorogate o terminate prima.
Kroger (NYSE:KR) anunció los resultados de la participación anticipada en sus ofertas de intercambio y solicitudes de consentimiento para los bonos de Albertsons Companies, Inc. (NYSE:ACI). A partir del 28 de agosto de 2024, $6,819,427,000 de monto principal agregado de Bonos ACI han sido válidamente ofrecidos, lo que representa aproximadamente el 91.64% del total de Bonos ACI en circulación. Kroger ha recibido los consentimientos necesarios para varias series de Bonos ACI para adoptar enmiendas propuestas a sus actos de gobierno.
Kroger está renunciando a la condición que requiere los consentimientos necesarios para cada serie y planea aceptar todos los Bonos ACI válidamente ofrecidos. La compañía ha modificado la contraprestación de intercambio a $1,000 de monto principal de Bonos Kroger por cada $1,000 de monto principal de Bonos ACI ofrecidos. Las ofertas de intercambio expirarán el 13 de septiembre de 2024, a menos que se extiendan o se terminen antes.
Kroger (NYSE:KR)는 Albertsons Companies, Inc. (NYSE:ACI) 채권에 대한 교환 제안 및 동의 요청에서 조기 참여 결과를 발표했습니다. 2024년 8월 28일 현재, $6,819,427,000의 ACI 채권 총액이 유효하게 제공되었습니다, 이는 총 발행된 ACI 채권의 약 91.64%에 해당합니다. Kroger는 여러 시리즈의 ACI 채권에 대한 제안된 수정 사항을 채택하기 위해 필요한 동의를 받았습니다.
Kroger는 각 시리즈에 필요한 동의를 요구하는 조건을 면제하고 모든 유효한 ACI 채권을 수락할 계획입니다. 회사는 제공된 ACI 채권 $1,000당 Kroger 채권 $1,000의 교환 고려사항을 수정했습니다. 교환 제안은 2024년 9월 13일에 만료되며, 연장되거나 조기 종료되지 않는 한 유효합니다.
Kroger (NYSE:KR) a annoncé les résultats de la participation anticipée à ses offres d'échange et sollicitations de consentement pour les obligations d'Albertsons Companies, Inc. (NYSE:ACI). Au 28 août 2024, $6,819,427,000 de montant principal agrégé des obligations ACI ont été valablement offerts, représentant environ 91,64 % du montant total des obligations ACI en circulation. Kroger a reçu les consentements requis pour plusieurs séries d'obligations ACI afin d'adopter les modifications proposées à leurs actes réglementaires.
Kroger renonce à la condition exigeant les consentements requis pour chaque série et prévoit d'accepter toutes les obligations ACI valablement offertes. La société a modifié la contrepartie de l'échange à $1,000 de montant principal d'obligations Kroger pour chaque $1,000 de montant principal d'obligations ACI offertes. Les offres d'échange expireront le 13 septembre 2024, sauf prolongation ou résiliation anticipée.
Kroger (NYSE:KR) hat die Ergebnisse der frühen Teilnahme an seinen Austauschangeboten und Zustimmungserklärungen für die Anleihen von Albertsons Companies, Inc. (NYSE:ACI) bekannt gegeben. Stand 28. August 2024 wurden $6.819.427.000 an aggregiertem Nennbetrag von ACI-Anleihen gültig angeboten, was etwa 91,64 % des gesamten ausstehenden ACI-Anleihenbetrags entspricht. Kroger hat die erforderlichen Zustimmungen für mehrere Serien von ACI-Anleihen erhalten, um die vorgeschlagenen Änderungen an ihren Regelwerken anzunehmen.
Kroger verzichtet auf die Bedingung, die die erforderlichen Zustimmungen für jede Serie verlangt und plant, alle gültig angebotenen ACI-Anleihen zu akzeptieren. Das Unternehmen hat die Austauschvergütung auf $1.000 Nennbetrag von Kroger-Anleihen für jede $1.000 Nennbetrag von ACI-Anleihen angepasst, die angeboten wurden. Die Austauschangebote laufen am 13. September 2024 aus, es sei denn, sie werden vorher verlängert oder beendet.
- High participation rate with 91.64% of ACI Notes tendered
- Waiver of consent condition allows for broader acceptance of tendered notes
- Simplified exchange consideration structure
- Potential increase in Kroger's debt obligations due to high participation in exchange offers
Insights
The announcement of Kroger's exchange offer results for Albertsons Companies' notes is a significant development in their merger process. With 91.64% of ACI Notes tendered, representing
Kroger's decision to waive certain conditions and amend the exchange offer terms demonstrates flexibility and commitment to closing the deal. The 1:1 exchange ratio for ACI Notes to Kroger Notes simplifies the process and may attract more participants. This move could help Kroger maintain financial stability post-merger by effectively managing the combined entity's debt structure.
However, investors should note that while this progress is positive, the merger's completion still depends on regulatory approvals. The exchange offers' success doesn't guarantee the deal will close, but it does remove one potential obstacle.
The execution of supplemental indentures for the Consented Series is a important legal step in this process. It allows Kroger to implement the Proposed Amendments, which likely include provisions facilitating the merger and subsequent integration of Albertsons' debt into Kroger's capital structure.
The extension of the Consent Solicitations for Unconsented Series to the Expiration Date provides additional time for holdouts to participate. This flexibility in the legal framework of the exchange offer demonstrates Kroger's commitment to maximizing participation and smoothing the path for the merger.
It's important to note that while these legal maneuvers are progressing well, they do not circumvent the need for regulatory approval. The statement that "the closing of the Merger is not conditioned upon the completion of the Exchange Offers or Consent Solicitations" underscores that regulatory hurdles remain the primary legal concern for investors.
As of 5:00 p.m.,
As of the Early Participation Date, the Company has received the requisite consents for each series of ACI Notes set forth in the table below (collectively, the "Consented Series"). Any series of ACI Notes for which the requisite consents have not yet been received are referred to collectively as the "Unconsented Series."
Title of Series of | Issuer(s) | CUSIP/ISIN No. | Principal | ACI Notes Tendered at | |
Principal | Percent of Principal | ||||
|
ACI, NALP, Safeway | 144A: 013092 AF8 /
Reg S: U0125L AG5 / | 94.90 % | ||
| ACI, NALP, Safeway | 144A: 013092 AA9 /
Reg S: U0125L AA8 / | 97.40 % | ||
| ACI, NALP, Safeway | 144A: 013092 AC5 /
Reg S: U0125L AC4 /
JAN: U0125LAF7 / | 97.27 % | ||
| ACI, NALP, Safeway | 144A: 013092 AB7 /
Reg S: U0125L AB6 / | 97.12 % | ||
| ACI, NALP, | 144A: 01309Q AA6 /
Reg S: U0126B AA9 / | 97.61 % | ||
| ACI, NALP, Safeway | 144A: 013092 AG6 /
Reg S: U0125L AH3 /
DEC: U0125LAJ9 / | 98.06 % | ||
| ACI, NALP, Safeway | 144A: 013092 AE1 /
Reg S: U0125L AE0 / | 97.26 % | ||
| ASC | 03009MBB1 / | 77.38 % | ||
| NALP | 01310QCW3 / | 85.14 % | ||
| NALP | 013104AH7 / | 80.94 % | ||
| NALP | 013104AL8 / | 75.92 % | ||
The applicable obligors have executed a supplemental indenture with respect to each of the Consented Series implementing the Proposed Amendments. The supplemental indentures implementing the Proposed Amendments will be effective upon execution, but will only become operative upon the settlement of the Exchange Offers on the Settlement Date (as defined below), which is expected to be promptly after the Expiration Date (as defined below).
Amendments and Waivers to the Exchange Offers and Consent Solicitations
The Company announced today that it is waiving the condition to the Exchange Offers that it shall have received the requisite consents with respect to each series of ACI Notes for the Proposed Amendments, and subject to the terms and conditions of the Exchange Offers and Consent Solicitations, plans to accept all ACI Notes validly tendered and not validly withdrawn at or prior to the Expiration Date, which includes ACI Notes of both the Consented Series and Unconsented Series.
The Company also announced amendments to the Exchange Offers to amend the consideration payable in respect of the Exchange Offers, such that for each
The consent revocation deadline for each of the Consent Solicitations occurred at the earlier of (i) the Early Participation Date and (ii) the date the applicable supplemental indenture implementing the Proposed Amendments was executed. As a result, after the Early Participation Date, tendered ACI Notes may be withdrawn, however, a valid withdrawal of tendered ACI Notes will not be deemed a revocation of the related consents and such consents will continue to be deemed delivered. Further, ACI Notes of the Unconsented Series that are first validly tendered after the Early Participation Date (subject to the extension of the Consent Solicitations, as further described below) may be withdrawn thereafter, however, a valid withdrawal of such ACI Notes of the Unconsented Series will not be deemed a revocation of the related consents and such consents will continue to be deemed delivered.
An Eligible Holder that validly tendered ACI Notes and delivered (and did not validly revoke) a consent prior to the Early Participation Date will continue to be eligible to receive a consent payment of
The Company also announced an amendment to the Consent Solicitations for the Unconsented Series, which will now expire as of the Expiration Date instead of the Early Participation Date. An Eligible Holder that validly tenders ACI Notes of the Unconsented Series after the Early Participation Date will be deemed to have validly delivered the related consents for the Proposed Amendments, but will not receive the Consent Payment with respect to such ACI Notes. If the requisite consents are received with respect to a series of ACI Notes following the Early Participation Date, the Company will direct the applicable ACI obligor to execute a supplemental indenture to effect the Proposed Amendments. For the avoidance of doubt, the Company is no longer soliciting consents for the Consented Series and the Consent Solicitations with respect to the Consented Series have expired.
The Exchange Offers and Consent Solicitations are being made pursuant to the terms and subject to the conditions set forth in the confidential offering memorandum and consent solicitation statement dated August 15, 2024 (the "Offering Memorandum"), including the closing of the merger of a wholly owned direct subsidiary of the Company with and into ACI, with ACI surviving the merger as a direct, wholly owned subsidiary of the Company (the "Merger"). Except as described in this press release, the terms and conditions of the Exchange Offers and Consent Solicitations, as set forth in the Offering Memorandum, remain unchanged. Kroger generally may waive any such condition at any time with respect to an Exchange Offer or Consent Solicitation, but may not waive the condition that the Merger shall have been consummated. Any waiver of a condition by Kroger with respect to an Exchange Offer will automatically waive such condition with respect to the corresponding Consent Solicitation, as applicable. In addition, Kroger may amend the terms of any Exchange Offer or Consent Solicitation without amending the terms of any other Exchange Offer or Consent Solicitation, respectively. Any amendment of the terms of an Exchange Offer by Kroger will automatically amend such terms with respect to the corresponding Consent Solicitation, as applicable. The closing of the Merger is not conditioned upon the completion of the Exchange Offers or Consent Solicitations.
Each Exchange Offer will expire at 5:00 p.m.,
Documents relating to the Exchange Offers and Consent Solicitations will only be distributed to eligible holders of ACI Notes who complete and return an eligibility certificate confirming that they are either a "qualified institutional buyer" under Rule 144A or not a "
This press release does not constitute an offer to sell or purchase, or a solicitation of an offer to sell or purchase, or the solicitation of tenders or consents with respect to, any security. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such an offer, solicitation or sale would be unlawful. The Exchange Offers and Consent Solicitations are being made solely pursuant to the Offering Memorandum and only to such persons and in such jurisdictions as are permitted under applicable law.
The Kroger Notes offered in the Exchange Offers have not been registered under the Securities Act of 1933, as amended, or any state securities laws. Therefore, the Kroger Notes may not be offered or sold in
About Kroger
At The Kroger Co. (NYSE:KR), we are dedicated to our Purpose: to Feed the Human Spirit™. We are, across our family of companies nearly 420,000 associates who serve over eleven million customers daily through a seamless digital shopping experience and retail food stores under a variety of banner names, serving America through food inspiration and uplift, and creating #ZeroHungerZeroWaste communities.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended. These statements are based on Kroger's assumptions and beliefs in light of the information currently available to the Company. These statements are subject to a number of known and unknown risks, uncertainties and other important factors, including the risks and other factors discussed in the "Risk Factors" section of the Offering Memorandum, that could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward looking statements. Such statements are indicated by words or phrases such as "achieve," "affect," "anticipate," "assumptions," "believe," "committed," "continue," "could," "deliver," "effect," "enable," "estimate," "expects," "future," "goal," "growth," "guidance," "intended," "likely," "maintain," "may," "model," "plan," "position," "program," "result," "strategy," "strong," "trend," "will" and "would," and variations of such words and similar phrases. Forward-looking statements are subject to inherent risks and uncertainties. Various uncertainties and other factors could cause actual results to differ materially from those contained in the forward-looking statements. These include:
- the extent to which Kroger's sources of liquidity are sufficient to meet its requirements may be affected by the state of the financial markets and the effect that such condition has on its ability to issue commercial paper at acceptable rates. Kroger's ability to borrow under its committed lines of credit, including its bank credit facilities, could be impaired if one or more of Kroger's lenders under those lines is unwilling or unable to honor its contractual obligation to lend to Kroger, or in the event that global pandemics, natural disasters or weather conditions interfere with the ability of Kroger lenders to lend to Kroger. Kroger's ability to refinance maturing debt may be affected by the state of the financial markets;
- Kroger's ability to achieve sales, earnings, incremental FIFO operating profit, and adjusted free cash flow goals, which may be affected by: its proposed transaction with ACI including, among other things, Kroger's ability to consummate the proposed transaction and related divestiture plan, including on the terms of the Merger Agreement and divestiture plan, on the anticipated timeline, with the required regulatory approvals, and/or resolution of pending litigation challenging the Merger; labor negotiations; potential work stoppages; changes in the unemployment rate; pressures in the labor market; changes in government-funded benefit programs; changes in the types and numbers of businesses that compete with us; pricing and promotional activities of existing and new competitors, and the aggressiveness of that competition; Kroger's response to these actions; the state of the economy, including interest rates, the inflationary, disinflationary and/or deflationary trends and such trends in certain commodities, products and/or operating costs; the geopolitical environment including wars and conflicts; unstable political situations and social unrest; changes in tariffs; the effect that fuel costs have on consumer spending; volatility of fuel margins; manufacturing commodity costs; supply constraints; diesel fuel costs related to Kroger's logistics operations; trends in consumer spending; the extent to which Kroger's customers exercise caution in their purchasing in response to economic conditions; the uncertainty of economic growth or recession; stock repurchases; changes in the regulatory environment in which Kroger operates; Kroger's ability to retain pharmacy sales from third party payors; consolidation in the healthcare industry, including pharmacy benefit managers; Kroger's ability to negotiate modifications to multi-employer pension plans; natural disasters or adverse weather conditions; the effect of public health crises or other significant catastrophic events; the potential costs and risks associated with potential cyber-attacks or data security breaches; the success of Kroger's future growth plans; the ability to execute Kroger's growth strategy and value creation model, including continued cost savings, growth of Kroger's alternative profit businesses, and Kroger's ability to better serve its customers and to generate customer loyalty and sustainable growth through its strategic pillars of Fresh, Our Brands, Data & Personalization, and Seamless; the successful integration of merged companies and new partnerships; Kroger's ability to maintain an investment grade credit rating; and the risks relating to or arising from its proposed nationwide opioid litigation settlement, including our ability to finalize and effectuate the settlement, the scope and coverage of the ultimate settlement and the expected financial or other impacts that could result from the settlement;
- Kroger's ability to achieve these goals may also be affected by its ability to manage the factors identified above. Kroger's ability to execute its financial strategy may be affected by its ability to generate cash flow;
- Kroger's effective tax rate may differ from the expected rate due to changes in tax laws, the status of pending items with various taxing authorities, and the deductibility of certain expenses; and
- the outcome of the Exchange Offers and Consent Solicitations.
The Company cannot fully foresee the effects of changes in economic conditions on Kroger's business. Other factors and assumptions not identified above, including those discussed in the "Risk Factors" section of the Offering Memorandum, the "Risk Factors" section in Kroger's most recently filed Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and in any subsequent documents that Kroger files with the
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SOURCE The Kroger Co.
FAQ
What percentage of Albertsons Companies, Inc. notes were tendered in Kroger's exchange offer as of August 28, 2024?
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