PLEASANTON, Calif. — Safeway on Tuesday filed a prospectus to sell an unspecified amount of new, 10-year notes and use the proceeds to repay $500 million in notes due Aug. 16.
The company said it would use a portion of the proceeds to repay outstanding short-term borrowings and the rest, combined with additional short-term borrowings, to repay the $500 million in 4.95% notes.
Fitch Ratings said it assigned a rating of "BBB" to Safeway's new offering with a rating outlook of "stable."
"The rating reflects Safeway's broad geographic presence and strong market positions with 1,712 stores in the U.S. and Western Canada, updated store base and merchandise offerings with 81% of its stores in the 'lifestyle' format at the end of the second quarter of 2010, significant free cash flow generation and willingness to reduce debt over time," Fitch said in a statement.
