Long-term Debt and Capitalized Lease Obligations

6 Months Ended

Sep. 08, 2018

Long-term Debt and Capitalized Lease Obligations

LONG-TERM DEBT AND CAPITALIZED LEASE OBLIGATIONS

The Company’s long-term debt as of September 8, 2018 and February 24, 2018, net of unamortized debt discounts of $230.2 million and $249.6 million, respectively, and deferred financing costs of $71.4 million and $79.7 million, respectively, consisted of the following (in millions):



	September 8, 2018			February 24, 2018
Albertsons Term Loans due 2021 to 2023, interest rate range of 4.32% to 5.34%	$	5,596.0		$	5,610.7
Albertsons Senior Unsecured Notes due 2024 and 2025, interest rate of 6.625% and 5.750%, respectively	2,477.9			2,476.1
NALP Notes due 2027 to 2031, interest rate range of 6.52% to 8.70%	1,406.5			1,393.9
Safeway Notes due 2019 to 2031, interest rate range of 3.95% to 7.45%	1,266.8			1,266.9
Other Notes Payable, unsecured	180.6			242.7
Mortgage Notes Payable, secured	19.1			20.9
Total debt	10,946.9			11,011.2
Less current maturities	(332.4		)	(66.1		)
Long-term portion	$	10,614.5		$	10,945.1

The Company's term loans (the "Albertsons Term Loans"), asset-based loan ("ABL") facility (the "ABL Facility") and certain of the outstanding notes and debentures have restrictive covenants, subject to the right to cure in certain circumstances, calling for the acceleration of payments due in the event of a breach of a covenant or a default in the payment of a specified amount of indebtedness due under certain debt arrangements. There are no restrictions on the Company's ability to receive distributions from its subsidiaries to fund interest and principal payments due under the ABL Facility, the Albertsons Term Loans and the Company's senior unsecured notes (the "Senior Unsecured Notes"). Each of the ABL Facility, Albertsons Term Loans and the Senior Unsecured Notes restrict the ability of the Company to pay dividends and distribute property to the Company's stockholders. As a result, all of the Company's consolidated net assets are effectively restricted with respect to their ability to be transferred to the Company's stockholders. Notwithstanding the foregoing, the ABL Facility, Albertsons Term Loans and the Senior Unsecured Notes each contain customary exceptions for certain dividends and distributions, including the ability to make cumulative distributions under the Albertsons Term Loans and Senior Unsecured Notes of up to the greater of $1.0 billion or 4% of the Company's total assets (which is measured at the time of such distribution) and the ability to make distributions if certain payment conditions are satisfied under the ABL Facility. The Company was in compliance with all such covenants and provisions as of and for the 28 weeks ended September 8, 2018.

Asset-Based Loan Facility

As of September 8, 2018 and February 24, 2018, there were no loans outstanding under the Company's ABL Facility, and letters of credit ("LOC") issued under the LOC sub-facility were $547.6 million and $576.8 million, respectively.

Capitalized Lease Obligations

The Company's capitalized lease obligations were $818.5 million and $864.6 million as of September 8, 2018 and February 24, 2018, respectively. Current maturities of capitalized lease obligations were $104.1 million and $102.1 million and long-term maturities were $714.4 million and $762.5 million as of September 8, 2018 and February 24, 2018, respectively.

Merger Related Financing

On June 25, 2018 the Company issued $750.0 million in aggregate principal amount of floating rate senior secured notes (the "Floating Rate Notes") at an issue price of 99.5%. As a result of the Termination Agreement with Rite Aid

on August 8, 2018, the Company redeemed all of the Floating Rate Notes at a redemption price equal to 99.5% of the aggregate principal amount of the notes, plus accrued and unpaid interest.