Belgian supermarket group Delhaize said today (13 June) that its subsidiary Delhaize America has priced its tender offer to purchase up to US$1.1bn of debt.
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As of yesterday, the group revealed that some $1.81bn had been validly tendered for its offer.
The company said that because the notes and debentures tendered exceeded the cap set it would not purchase any of the 8.05% 2027 notes in the offer.
Delhaize will pay $1,085.70 for each $1,000 of its 8.125% 2011 notes and $1,225.64 for each $1,000 of its 9% 2031 debentures. Holders who tendered by 12 June will receive a premium of $40 per $1,000 face value of notes.
The amount of each series to be purchased would be determined in the following two business days based on the tender cap and with priority given to the 2011 notes.
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By GlobalDataDelhaize has said it will finance the buyback with a series of euro-denominated senior notes due in 2014 and a series of US dollar-denominated senior notes due in 2017.
Delhaize reiterated its previous assertion that the buyback will result in a one-off charge in the second quarter of 2007 but will have a positive effect on earnings starting in 2008.
