Dutch supermarket giant Koninklijke Ahold Delhaize NV launched an €800 million debt offering to institutional investors across Europe, according to a March 12 company release.
The debt securities comprise notes valued at 99.107% — or a total price of €500 million — due 2026 with a fixed annual interest rate of 1.125%, and notes valued at 100.449% — or a total of €300 million — due 2021 with a variable interest rate of 18 basis points over a three-month Euro Interbank Offered Rate per year.
The retailer, which operates the chains Food Lion and Stop & Shop in the U.S., will list the notes on the Euronext Amsterdam stock exchange and use the proceeds to pay off existing debt and corporate expenses.
Ahold Delhaize, which recently announced plans to return €2 billion to shareholders in 2018, will settle the offer March 19.
BNP PARIBAS, Deutsche Bank, Goldman Sachs International and J.P. Morgan acted as joint lead managers in the offering.
