Supervalu Takes Step Toward Save-A-Lot Spinoff

Supervalu Inc. said it has completed an amendment of its $1.5 billion senior secured term loan agreement that will permit it to make transactions related to its planned spinoff of the Earth City-based Save-A-Lot grocery chain.

Minnesota-based Supervalu (NYSE: SVU) said in January that it planned to spin off its Save-A-Lot brand.

Supervalu said Monday that on May 20, it entered into an amendment of its existing $1.5 billion senior secured term loan agreement dated Jan. 31, 2014.

In the event the Save-A-Lot spinoff is consummated, the amendment requires Save-A-Lot to issue a minimum of $400 million of long-term debt and that Supervalu's term loan balance be reduced by at least $350 million, including with net cash proceeds of the Save-A-Lot debt issuance.

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