Safeway seeks to buy out senior notes

Pleasanton, Calif. – Safeway Inc. is offering to pay cash consent fees to holders of three series of senior notes due in 2017, 2018 and 2019. Note holders who accept the fees would release Safeway of the obligation to repurchase the notes at 1% interest when its expected fourth quarter merger with Albertson’s LLC occurs.



The consent fee offer expires Oct. 3, 2014. Holders of a majority of the principal of each series of notes must accept the consent fees for Safeway to be able to pay them out. In this case, Safeway will not have to repurchase any notes from holders who do not accept the consent fees.