Delhaize Announces Debt Refinancing Plan

BRUSSELS — Delhaize Group here said Wednesday it would seek to raise around $1.1 billion through private debt placements, and then use the proceeds to retire about the same amount of existing debt.

BRUSSELS — Delhaize Group here said Wednesday it would seek to raise around $1.1 billion through private debt placements, and then use the proceeds to retire about the same amount of existing debt. The refinancing plan comes shortly after Delhaize implemented a cross-guarantee between itself and its Delhaize America subsidiary and attained investment-grade ratings from Standard & Poor’s and Moody’s Investors Service. Delhaize America offered to buy back up to $1.1 billion in outstanding 8.125% notes due in 2011 at a spread of 50 basis points over U.S. Treasuries. It also offered to buy back $855 million in 9% debentures due in 2031 and $126 million in 8.050% notes due 2027, each at 170 basis points over treasury. Delhaize said the 2011 notes would receive highest priority. The buyback will be financed by proceeds from the sale of a series of Euro-dominated senior notes due 2014 and a series of U.S. dollar dominated senior notes due 2017, Delhaize said.

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