Supervalu completes loan amendment that allows Save-A-Lot spin off

Supervalu Inc said May 23 that it completed an amendment of its existing $1.5 billion senior secured term loan agreement that will allow it to begin possibly spin off Save-A-Lot into a stand-alone, publicly traded company. The amendment requires that Save-A-Lot issue a minimum of $400 million of long-term debt and that Supervalu’s term loan balance be reduced by a minimum of $350 million. Supervalu is also required to retain a minimum equity stake in spun-off publicly traded Save-A-Lot. Supervalu is backed by Cerberus. Save-A-Lot is a discounted supermarket chain.

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