Delhaize Group
NYSE : DEG
EURONEXT BRUSSELS : DELB.BR
EURONEXT BRUSSELS : DELB

April 04, 2012 02:30 ET

Delhaize Group Announces Debt Tender Offer Results and Completes Pricing of Senior Notes

BRUSSELS, BELGIUM--(Marketwire - Apr 4, 2012) - Delhaize Group (EURONEXT BRUSSELS: DELB) (NYSE: DEG), the Belgian international food retailer, announced today the results of a tender offer to qualifying holders for cash prior to maturity of up to EUR 300 million aggregate principal amount of its outstanding 5.625% Senior Notes due 2014 (the "Notes"), plus accrued and unpaid interest and premium amounts (the "Offer"). Delhaize Group also announced that it has completed the pricing of USD 300 million of Senior Notes due 2019, at an annual coupon of 4.125% (the "New Notes"), to be issued at 99.807% of their principal amount. The net proceeds of the issuance will be used in part to fund Delhaize Group's repurchase in the Offer. Any remaining net proceeds from the sale of the New Notes are expected to be used for general corporate purposes.

Debt Tender Offer Results

The Offer commenced on March 22, 2012 expired on 2 April 2012 at 4.00 p.m. (London time). EUR 191 067 000 in nominal amount of the Notes were validly offered for sale to Delhaize Group pursuant to the Offer. Delhaize Group has accepted for purchase an aggregate nominal amount of EUR 191 067 000 of the Notes at a purchase price of 108.079 per cent. The purchase price, together with accrued interest, will be paid to qualifying holders whose Notes have been accepted for purchase on or about 10 April 2012. Following completion of the Offer, an aggregate nominal amount of EUR 308 933 000 of the Notes will remain outstanding.

The purpose of the Offer is to manage the debt maturity profile of Delhaize Group. The Offer was made only outside the United States, and no tenders from the United States were accepted. Any Notes purchased by Delhaize Group pursuant to the Offer will be cancelled and will not be reissued or resold.

Issuance of the New Notes

The New Notes will be issued by Delhaize Group, which is currently rated Baa3 by Moody's Investors Service, Inc. and BBB- by Standard and Poor's Ratings Services (both with a stable outlook). The New Notes will contain a change of control provision allowing their holders to require Delhaize Group to repurchase the New Notes at 101% of their aggregate principal amount in certain circumstances. In addition to the New Notes that will be issued, Delhaize Group issued EUR 400 million of retail bonds in October 2011 that contained a change of control provision approved by the general meeting of shareholders dated 26 May 2011. This offering of the New Notes is being made to qualified investors pursuant to an effective registration statement filed by Delhaize Group with the U.S. Securities and Exchange Commission (SEC). The New Notes will not be listed on any stock exchange. The New Notes are expected to be issued on April 10, 2012, subject to customary closing conditions.

» Delhaize Group

Delhaize Group is a Belgian international food retailer present in eleven countries on three continents. At the end of 2011, Delhaize Group's sales network consisted of 3 408 stores. In 2011, Delhaize Group posted EUR 21.1 billion (USD 29.4 billion) in revenues and EUR 475 million (USD 661 million) in net profit (Group share). At the end of 2011, Delhaize Group employed approximately 160 000 people. Delhaize Group's stock is listed on NYSE Euronext Brussels (DELB) and the New York Stock Exchange (DEG). This press release is available in English, French and Dutch. You can also find it on the website http://www.delhaizegroup.com. Questions can be sent to investor@delhaizegroup.com.

DISCLAIMER

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, Delhaize Group's senior notes or any other securities, nor shall there be any sale of securities mentioned in this press release in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Press release in pdf format:

http://hugin.info/133961/R/1599987/504955.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Delhaize Group via Thomson Reuters ONE [HUG#1599987]

Contact Information

  • Contacts

    Chris Farrell
    + 32 2 412 75 71

    Aurelie Bultynck
    + 32 2 412 83 61

    Steven Vandenbroeke (media)
    +32 2 412 86 69

    Amy Shue (U.S. investors)
    +1 704 633 82 50 (ext. 2529)