LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS

9 Months Ended

Dec. 03, 2022

Debt Disclosure [Abstract]

LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS

LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS

The Company's long-term debt and finance lease obligations as of December 3, 2022 and February 26, 2022, net of unamortized debt discounts of $38.4 million and $41.4 million, respectively, and deferred financing costs of $48.4 million and $57.5 million, respectively, consisted of the following (in millions):

	December 3, 2022		February 26, 2022
Senior Unsecured Notes due 2023 to 2030, interest rate range of 3.25% to 7.50%	$	6,501.2	$	6,492.5
Safeway Inc. Notes due 2027 to 2031, interest rate range of 7.25% to 7.45%	374.8		374.4
New Albertsons L.P. Notes due 2026 to 2031, interest rate range of 6.52% to 8.70%	475.4		472.6
ABL Facility	1,200.0		—
Other financing obligations	28.9		29.1
Mortgage notes payable, secured	16.9		17.1
Finance lease obligations	520.1		579.4
Total debt	9,117.3		7,965.1
Less current maturities	(2,025.6)		(828.8)
Long-term portion	$	7,091.7	$	7,136.3

ABL Facility

On November 2, 2022, the Company provided notice to the lenders to borrow $1,400.0 million under the Company's amended and restated senior secured asset-based loan facility (as amended, the "ABL Facility"), which together with cash on hand was to be used to fund the payment of the Special Dividend. During the 12 weeks ended December 3, 2022, the average interest rate on the ABL Facility was approximately 5.6%.

As of December 3, 2022, $1,200.0 million remained outstanding under the ABL Facility as the Company repaid $200.0 million on December 2, 2022. Though the Special Dividend has not yet been paid, the remaining outstanding balance will be used to facilitate the immediate payment of the Special Dividend once the Company is no longer enjoined from making the payment that is lawfully due to its stockholders (see Note 2 – Merger Agreement and Special Dividend). The outstanding balance is recorded in Current maturities of long-term debt and finance lease obligations as the $1,200.0 million was borrowed with initial interest rate maturity period of 90 days, which can be extended and reset through the maturity date of the ABL Facility of December 20, 2026. Though the Company has the ability to extend the payment on a long-term basis, the Company, at its own discretion, may pay all or a portion of the outstanding balance within the next 12 months with any future surplus cash flows.

There was $56.1 million of letters of credit ("LOC") issued under the LOC sub-facility as of December 3, 2022. As of February 26, 2022, there were no amounts outstanding under the ABL Facility and LOC issued under the LOC sub-facility were $249.4 million.