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BOISE, Idaho - Albertsons Companies , Inc. (NYSE: NYSE:ACI), a major food and drug retailer with a market capitalization of $11.94 billion, announced today its plan to offer $600 million in senior notes due 2033. The company, along with its subsidiaries Safeway Inc., New Albertsons L.P., Albertson’s LLC, and Albertsons Safeway LLC, will co-issue the notes.
The proceeds from this offering, complemented by available cash, are earmarked for the repayment of $600 million in outstanding 7.500% senior notes due on March 15, 2026. This strategic financial move aims to manage the company’s debt effectively by taking advantage of the current financial markets. According to InvestingPro data, the company maintains a debt-to-equity ratio of 4.22 and a current ratio of 0.93, with total debt standing at $14.21 billion.
The notes are targeted at qualified institutional buyers in the U.S. under Rule 144A and at international investors in compliance with Regulation S of the Securities Act of 1933, as amended. These notes have not been registered under the Securities Act and are subject to market conditions and other factors, with no assurance of the offering’s completion.
Albertsons operates a vast network of retail food and drug stores across the United States. As of November 30, 2024, their portfolio included 2,273 stores with a variety of associated amenities such as pharmacies and fuel centers. The company is known for its community contributions, having donated more than $350 million in 2023 through food and financial support. InvestingPro analysis shows the company generated $3.84 billion in EBITDA over the last twelve months, with analysts setting price targets ranging from $19 to $27 per share. InvestingPro subscribers can access detailed financial health metrics and 14+ additional expert insights about Albertsons through comprehensive Pro Research Reports.
This announcement contains forward-looking statements regarding the completion of the notes offering and the intended use of proceeds. These statements are based on current expectations and projections and are subject to various risks and uncertainties that could cause actual results to differ materially.
The information provided is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the notes. Potential investors are advised to carefully consider the risks and uncertainties detailed in the company’s SEC filings before making any investment decisions.
In other recent news, Albertsons Companies Inc. has announced its decision to redeem $600 million in senior notes due in 2026, ahead of their maturity date. This financial move is part of the company’s broader strategy to manage its financial obligations effectively. Following the recent termination of a proposed merger with Kroger (NYSE:KR), Albertsons has been the subject of several analyst updates. Citi has resumed coverage on the company with a Buy rating and a $26 price target, citing the potential for improved sales and profitability through self-help initiatives. Similarly, Telsey Advisory Group upgraded Albertsons to Outperform, raising the price target to $26, reflecting confidence in the company’s growth potential post-merger. RBC Capital Markets also maintains an Outperform rating, increasing its price target to $22, noting positive momentum in the company’s pharmacy segment. In contrast, reports of staff layoffs have emerged, following the halted merger, which has impacted the company’s shares. These developments highlight Albertsons’ strategic adjustments and the varied analyst perspectives on its future trajectory.
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