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Subsequent Events Subsequent Events
6 Months Ended
Sep. 10, 2016
Subsequent Events [Abstract]  
Subsequent Events
NOTE 15—SUBSEQUENT EVENTS
Proposed Sale of Save-A-Lot
On October 16, 2016, the Company, Moran Foods, LLC, a wholly owned subsidiary of the Company (“Save-A-Lot”), Smith Acquisition Corp. (the “Purchaser”), an affiliate of Onex Partners Manager LP, and Smith Merger Sub Corp., a newly formed wholly owned subsidiary of the Purchaser (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which the Purchaser will acquire the Save-A-Lot business of the Company. On the terms and subject to the conditions set forth in the Merger Agreement, at the closing of the transactions contemplated thereby (the “Closing”), Merger Sub will merge with and into Save-A-Lot, with Save-A-Lot surviving the merger as a wholly owned subsidiary of the Purchaser, and the membership units of Save-A-Lot held by the Company will be converted into the right to receive from Purchaser at the Closing $1.365 billion in cash, subject to working capital, indebtedness and other customary adjustments as set forth in the Merger Agreement. The transaction is currently expected to be completed by January 31, 2017, subject to receipt of required regulatory approvals and other customary closing conditions.
As of September 10, 2016, the Save-A-Lot business incorporated net assets of approximately $620 to $630 that SUPERVALU expects to dispose of through the sale of the Save-A-Lot business. Upon completion of the sale of the Save-A-Lot business, the Company will use a portion of the cash proceeds, net of the transaction-related fees, expenses and taxes, to make a mandatory prepayment of $750 against the Company’s outstanding balance under the Secured Term Loan Facility. The Company anticipates making an additional $50 to $100 payment against the Secured Term Loan Facility balance to bring the Total Secured Leverage Ratio on a pro forma basis giving effect to such prepayment to be no higher than 1.50:1.00. The Company intends to use the remaining net proceeds, estimated to be in the range of $275 to $350 after customary adjustments at closing, to further reduce debt and improve its capital structure as well as to fund corporate and growth initiatives.
The Merger Agreement will result in the classification of assets and liabilities of the Save-A-Lot business as held-for-sale as of the Company’s third quarter of fiscal 2017. The Company will assess the carrying value of its assets held-for-sale for impairment in accordance with generally accepted accounting principles to asses if the carrying value of the respective assets exceed their estimated fair value, prior to measuring the held-for-sale business at fair value less cost to sell.
Business Acquisitions

Refer to Note 2—Business Acquisitions for the Company's subsequent events information related to business acquisitions.