(Bloomberg) -- Kroger Co. said that it is swapping at least $6.8 billion of Albertsons Cos. notes for new securities, representing about 92% of the securities it offered to exchange earlier this month.
On Aug. 15, Kroger said it was looking to exchange $7.44 billion of Albertsons notes for new securities. Kroger, a grocery story chain, agreed in 2022 to buy its smaller competitor, a transaction that US antitrust authorities, among other parties, are looking to block.
Enough investors have agreed to swap their securities to allow changes in the lending agreements, or indentures, for many Albertsons bonds, according to Kroger. Investors that swapped their bonds by the early participation deadline of 5 p.m. in New York on Wednesday are receiving similar Kroger notes, plus $1 cash per $1,000 of principal. The final deadline of the exchange is on Sept. 13. Kroger said it now plans to accept all of the Albertsons notes that are validly tendered.
After the Cincinnati, Ohio-based company kicked off the exchange offer earlier this month, it then sold $10.5 billion of investment-grade bonds to help fund a portion of the acquisition. Kroger initially inked a $17.4 billion bridge loan to help fund the deal announced in 2022, valued at $24.6 billion.
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