LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS

9 Months Ended

Dec. 05, 2020

LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS

The Company's long-term debt and finance lease obligations as of December 5, 2020 and February 29, 2020, net of unamortized debt discounts of $39.5 million and $41.3 million, respectively, and deferred financing costs of $71.0 million and $72.9 million, respectively, consisted of the following (in millions):


	December 5, 2020		February 29, 2020

Senior Unsecured Notes due 2023 to 2030, interest rate range of 3.25% to 7.50%	$	6,885.4	$	6,884.5
Safeway Inc. Notes due 2021 to 2031, interest rate range of 4.75% to 7.45%	504.2		642.1
New Albertsons L.P. Notes due 2026 to 2031, interest rate range of 6.52% to 8.70%	468.4		466.0

Other financing obligations	37.3		37.2
Mortgage notes payable, secured	17.7		18.2
Finance lease obligations	627.4		666.7
Total debt	8,540.4		8,714.7
Less current maturities	(212.4)		(221.4)
Long-term portion	$	8,328.0	$	8,493.3

Senior Unsecured Notes

On August 31, 2020, the Company and substantially all of its subsidiaries completed the issuance of $750.0 million in aggregate principal amount of 3.250% Senior Unsecured Notes which will mature on March 15, 2026 (the "2026 Notes") and $750.0 million in aggregate principal amount of 3.500% Senior Unsecured Notes which will mature on March 15, 2029 (the "2029 Notes" and together with the 2026 Notes, the "New Notes"). Interest on the New Notes is payable semi-annually in arrears on March 15 and September 15 of each year, commencing on March 15, 2021. The New Notes have not been and will not be registered with the SEC. The New Notes are also fully and unconditionally guaranteed, jointly and severally, by substantially all of the Company's subsidiaries that are not issuers under the indenture governing such New Notes. On September 11, 2020, proceeds from the New Notes, together with approximately $60 million cash on hand, were used to fully redeem the $1,250.0 million in aggregate principal amount outstanding of the Company's 6.625% Senior Unsecured Notes due 2024 (the "2024 Redemption"). In connection with the 2024 Redemption, the Company paid an associated redemption premium of

$41.4 million. The Company recorded a $49.1 million loss on debt extinguishment related to the 2024 Redemption, comprised of the $41.4 million redemption premium and $7.7 million write-off of deferred financings costs.

On September 16, 2020, remaining proceeds from the New Notes were used to fund the partial redemption of $250.0 million of the $1,250.0 million in aggregate principal amount outstanding (the "September Partial 2025 Redemption") of the Company's 5.75% Senior Unsecured Notes due 2025 (the "2025 Notes"). In connection with the September Partial 2025 Redemption, the Company paid an associated redemption premium of $7.2 million. The Company recorded an $8.6 million loss on debt extinguishment related to the September Partial 2025 Redemption, comprised of the $7.2 million redemption premium and a $1.4 million write-off of deferred financing costs.

On December 22, 2020, subsequent to the end of the third quarter of fiscal 2020, the Company and substantially all of its subsidiaries completed the issuance of $600.0 million in aggregate principal amount of additional 2029 Notes (the "Additional 2029 Notes"). The Additional 2029 Notes were issued under the same indenture as the 2029 Notes issued by the Company on August 31, 2020. Interest on the Additional 2029 Notes is payable semi-annually in arrears on March 15 and September 15 of each year, commencing on March 15, 2021. The Additional 2029 Notes have not been and will not be registered with the SEC. The Additional 2029 Notes are also fully and unconditionally guaranteed, jointly and severally, by substantially all of the Company's subsidiaries that are not issuers under the indenture governing such Additional 2029 Notes. On January 4, 2021, proceeds from the Additional 2029 Notes, together with approximately $230 million of cash on hand, were used to fund another partial redemption of $800.0 million of the $1,000.0 million in aggregate principal amount outstanding of the 2025 Notes (the "January Partial 2025 Redemption").

Safeway Notes

The Company repaid the remaining $136.8 million in aggregate principal amount of Safeway Inc.'s ("Safeway") 3.95% Notes due 2020 on their maturity date, August 15, 2020.

ABL Facility