Kroger Extends Exchange Offers and Consent Solicitations Deadline for Albertsons Notes
Cincinnati, Oct. 8, 2024 – Kroger Co. (NYSE: KR) has announced the extension of the deadline for its previously announced exchange offers and consent solicitations for Albertsons Companies, Inc. (NYSE: ACI) notes. The new deadline is October 16, 2024, at 5:00 p.m. New York City time. The original expiration date was October 9, 2024.
This extension affects all outstanding Albertsons notes and allows holders additional time to participate in the exchange for up to $7.44 billion in Kroger-issued notes. Additionally, cash offers will also be included. Kroger has made this decision to provide more flexibility to investors as it approaches its upcoming merger with Albertsons.
Consent Solicitations and Merger Impact
Along with extending the exchange offer, Kroger also pushed back the deadline for related consent solicitations. These solicitations are aimed at securing agreement on amendments to the indentures governing the Albertsons notes. The amendments would only become effective after the successful settlement of the exchange offers.
As of August 2024, Kroger had already obtained the necessary consents for some series of notes. However, further amendments are still needed, making this extension crucial for ensuring the successful completion of the transaction.
The merger between Kroger and Albertsons is expected to close by the end of 2024, during the fourth quarter. This merger is not contingent on the completion of the exchange offers or consent solicitations, but Kroger anticipates that both processes will align to close around the same time. Should additional extensions be necessary, Kroger intends to announce them ahead of time.
Key Takeaways for Investors
For industry professionals and investors, this extension is significant. It gives investors extra time to review their options, submit tenders, and prepare for the potential changes arising from the Kroger-Albertsons merger. Kroger has assured that any tenders submitted before the new deadline can be withdrawn at any point before the expiration date.
All the terms of the exchange offer and consent solicitation remain unchanged. Only eligible holders of Albertsons notes are permitted to participate, as per U.S. securities regulations. The exchange offers and consent solicitations are available only to qualified institutional buyers and those not classified as U.S. persons under applicable securities laws.
Investors looking to participate should act before the new expiration date of October 16, 2024. Kroger’s merger with Albertsons, along with this exchange offer, is poised to reshape the market, making it essential for industry insiders to stay informed.
Conclusion
Kroger’s extension of its exchange offers and consent solicitations signals the company’s commitment to flexibility and investor participation. As the Kroger-Albertsons merger nears, these developments will be crucial for noteholders and investors tracking the retail and supermarket sectors.
