stater bros storefront

Stater Bros. goes completely private

Stater Bros. Markets [4], San Bernardino, Calif., has become a totally private company with no public debt following a debt restructuring earlier this month.

As a result, the company said it no longer has a legal requirement to file financial results with the public or the Securities and Exchange Commission, though it is still evaluating what kind of information it will disseminate in the future, Dave Harris, EVP, finance, told SN.

The new $725 million facility consists of a revolver of $150 million, plus $325 million in term loan A and $250 million in term loan B, he said, which enabled Stater to issue an irrevocable call to bondholders to pay off its senior unsecured notes of $285 million, which was due in 2015, and $255 million, which was due in 2018.


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Harris made the announcement during a conference call with analysts Wednesday discussing its most recent qurterly results.

Also during the call Jack Brown, chairman, president and CEO, said Stater is “prepared to move quickly” if any Vons or Albertsons stores become available as the merger between the two companies progresses.

“We’ve already plotted every Vons and Albertsons location, and there are some duplicate stores that may become available.” he said. “We’ve put together a wish list, and we’re well positioned financially to move ahead if and when any locations become available that improve our market share.”

Brown said Stater would also consider some locations “that would move our network of stores further out.”

He said he expects independents to pick up some locations, “but the marketplace will stay pretty much the same.”

Safeway-owned Vons is being acquired by the Cerberus Capital Management-led consortium that owns Albertsons in a deal expected to close in the fourth quarter.

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