Safeway Inc. (SWY) Plans to Pay 2B in Debt
In response to questions regarding the sale of our Canadian operations to Empire/Sobeys for C$5.8 billion in cash, Safeway Inc. (NYSE: SWY) prepared the following information. All dollar amounts are in U.S. dollars unless otherwise noted. Assets and liabilities of Canada Safeway Limited are translated into U.S. dollars at the rate of exchange on the balance sheet date. Income and expenses are translated at average rates during the period.
As the result of the transaction, 2013 free cash flow and the 2013 Blackhawk IPO, Safeway currently plan to repay or retire a total of $2.8 billion in debt compared to debt balances at the end of fiscal 2012. The transaction will allow Safeway to repay or retire approximately $2.0 billion as soon as practicable after the transaction closes, in addition to the previously disclosed approximately $0.8 billion from 2013 free cash flow and 2013 Blackhawk IPO proceeds.
The following debt is coming due in the near term, some of which Safeway could pay off by the end of 2013 and some of which Safeway may be able to retire ahead of the maturity and avoid the cost of a tender offer or make whole payments.
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