Supervalu Sets Rate on $2.4 Billion Loan for Cerberus Sale
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Supervalu Inc., the third-largest U.S. grocery chain, set the rate it will pay on $2.4 billion of loans to support the sale of five supermarket chains to a Cerberus Capital Management LP-led investor group.
A six-year, $1.5 billion term loan, that won’t have financial-maintenance covenants, will pay interest at 5.75 percentage points more than the London interbank offered rate with a 1.25 percent minimum, said a person with knowledge of the matter. Supervalu, based in Eden Prairie, Minnesota, may sell the debt at 98.5 cents on the dollar, said the person, who asked not to be identified because terms are private.