Salisbury, NC — Delhaize America, Inc. (NYSE: DZA, DZB) announced today that it has finalized financing arrangements for its acquisition of
Hannaford Bros., Co. (NYSE:HRD). The financing, in the form of a $2.5 billion, 364-day term loan facility and two $500 million revolving credit facilities (with 364-day and 5-year maturities), has been arranged by J.P. Morgan Securities Inc., and a global group of lenders. The revolving credit facilities will be used to support day-to-day operations during the integration of the two companies.
Standard & Poor’s Ratings Services and Moody’s Investor Service, Inc. have both completed their reviews of the Hannaford acquisition and have issued post-acquisition credit ratings of BBB-/Baa3, respectively, for Delhaize America, Inc.
Delhaize America announced last August its intention to purchase Hannaford Bros., including the assumption of Hannaford debt, for $3.6 billion in cash and Delhaize America Class A common stock.
Delhaize America operates more than 1,200 supermarkets throughout the Southeast and Mid-Atlantic regions under the names
Food Lion,
Kash n’ Karry and Save n’ Pack. The company posted 1999 sales of $10.9 billion. Earnings for 1999 will be released February 10, 2000. With the acquisition of Hannaford Bros., the company will become the nation’s sixth largest supermarket chain with over 1,400 stores throughout the eastern United States from Maine to Florida, with total projected revenues for 2000 of approximately $15 billion, and more than 116,000 full-time and part-time employees.
Contact: Chris Ahearn (704) 633-8250, Ext. 2892