MINNEAPOLIS, MN - Supervalu Inc. announced that it has finished the process of amending, repricing, and extending its $1 billion asset-based revolving credit facility, effectively lowering certain rates and fees.

“On July 28, 2015, the Company announced that it is exploring a potential separation of its Save-A-Lot segment, and that as part of that process it had begun preparations to allow for a possible spin-off of Save-A-Lot into a stand-alone, publicly traded company,” the retail chain announced in a press release when confirming the changes. “This amendment permits the Company and its subsidiaries to undertake certain transactions reasonably determined by the Company to be necessary to effectuate a spin-off of Save-A-Lot.”

While the move is one to bring the company closer to the spin-off, it also specified that it might not actually happen. There is still no specific timetable that Supervalu has disclosed as far as actually separating the Save-A-Lot banner, in fact the company went so far as to clarify that taking these steps do not guarantee that the spin-off, or any other change in its structure, will actually take effect.

For now, the changes do mean that Supervalu’s revolving credit facility’s rates on borrowings and letters of credit will be reduced by 0.25 percent, as well as a 0.125 percent cut on its facility fees, and the maturity date of its revolving credit facility being moved to February 3, 2021 (a 16 month extension).

According to the release, the amendment also includes:

• Modification of certain representations and warranties
• Covenants and events of default set forth in the revolving credit facility
• Providing for the adjustment of certain covenants in the event a spin-off of Save-A-Lot does take place.

AndNowUKnow will report as more details come to light on the company’s plans for the Sav-A-Lot banner.

Supervalu