Deals
Albertsons' Safeway Buys Back Notes to End Default Claim
- Grocer is said to desire clear path for future debt overhauls
- Holders had claimed 2015 Safeway takeover violated terms
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Albertsons Cos.’ Safeway unit repurchased more than $330 million of bonds in a deal with holders that resolves allegations of a debt default triggered by Safeway’s takeover.
The company bought back the bonds at par plus accrued and unpaid interest, covering notes due in 2031 and 2027, according to a regulatory filing. They were repurchased from a group holding just over 50 percent of the Safeway notes, according to people with knowledge of the matter, who asked not to be identified because the discussions are private. The transaction results in the release of claims by both sides, the people said. A representative from Safeway didn’t provide a comment on the matter.