Filed Pursuant to Rule 433

Registration No. 333-200039

November 10, 2014

 

PRICING TERM SHEET

 

SUPERVALU INC.

 

$350,000,000 of 7.75% Senior Notes Due 2022

 

This Pricing Term Sheet should be read together with the Preliminary Prospectus Supplement, subject to completion, dated November 10, 2014, relating to SUPERVALU INC.’s 7.75% senior notes due 2022 (the “Preliminary Prospectus Supplement”). The information in this Pricing Term Sheet supplements the Preliminary Prospectus Supplement, supersedes the information in the Preliminary Prospectus Supplement to the extent inconsistent with the information in the Preliminary Prospectus Supplement, and is otherwise qualified in its entirety by reference to the Preliminary Prospectus Supplement.  Terms used herein but not defined herein have the respective meanings given to them in the Preliminary Prospectus Supplement.

 

Issuer:

 

SUPERVALU INC.

 

 

 

Securities:

 

7.75% Senior Notes due 2022

 

 

 

Principal Amount:

 

$350,000,000

 

 

 

Maturity:

 

November 15, 2022

 

 

 

Interest Payment Dates:

 

November 15 and May 15

 

 

 

Record Dates:

 

November 1 and May 1

 

 

 

First Interest Payment Date:

 

May 15, 2015

 

 

 

Underwriting Discount

 

0.750%

 

 

 

Net Proceeds (after deducting underwriting discounts and estimated offering expenses)

 

$346,475,000

 

 

 

Initial Public Offering Price:

 

100.000%, plus accrued interest from November 14, 2014

 

 

 

Yield-to-Maturity:

 

7.750%

 

 

 

Spread to Benchmark Treasury:

 

557 basis points

 



 

Benchmark Treasury:

 

1.625% UST due November 15, 2022

 

 

 

Optional Redemption Upon Certain Equity Offerings:

 

Prior to November 15, 2017, up to 35% of the aggregate principal amount of the notes at 107.750%, plus accrued and unpaid interest, if any, to the redemption date.

 

 

 

Optional Redemption:

 

On or after:

 

 

 

 

 

November 15, 2018

103.875

%

 

 

 

 

 

 

 

 

 

November 15, 2019

101.938

%

 

 

 

 

 

 

 

 

 

November 15, 2020 and thereafter

100.000

%

 

 

 

 

 

 

plus accrued and unpaid interest, if any, to the redemption date.

 

 

 

Make Whole Redemption:

 

Prior to November 15, 2018, make-whole call based on treasury plus 50 bps, plus accrued and unpaid interest, if any, to the redemption date.

 

 

 

Trade Date:

 

November 10, 2014

 

 

 

Settlement:

 

November 14, 2014 (T + 3)

 

 

 

CUSIP / ISIN:

 

CUSIP: 868536 AW3

 

ISIN: US868536AW39

 

 

 

Joint Bookrunning Managers:

 

Goldman, Sachs & Co.

Credit Suisse Securities (USA) LLC

Morgan Stanley & Co. LLC

Barclays Capital Inc.

 

 

 

Co-Managers:

 

Merrill Lynch, Pierce, Fenner & Smith
Incorporated

Wells Fargo Securities, LLC

 

 

 

 

The Issuer has filed a registration statement (including a prospectus and the Preliminary Prospectus Supplement, with the U.S. Securities and Exchange Commission (the “SEC”) for this offering.  Before you invest, you should read the Preliminary Prospectus Supplement and the documents incorporated by reference therein that the Issuer has filed with the SEC for more complete information about the Issuer and the offering.  Alternatively, you may get the incorporated documents the Issuer has filed with the SEC for free by visiting EDGAR on the SEC website at www.sec.gov.  A copy of the Preliminary Prospectus Supplement for the offering can be obtained from Goldman, Sachs & Co., Prospectus Department, 200 West Street, New York, NY 10282, by telephone at 1-866-471-2526, or e-mail at prospectus-ny@ny.email.gs.com.

 

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