Supervalu to raise $500 million in note offering

Minneapolis Supervalu said Thursday that it will raise $500 million through a senior note offer. The money will be used primarily to repay maturing debt issued by subsidiary New Albertson’s.

Supervalu on Thursday launched a program to repurchase up to $700 million of the New Albertson's notes early in exchange for cash. Currently there are two notes, each with outstanding principal totaling $350 million, which are due Aug. 1. A note maturing on May 1, 2010 has $275 million in principal outstanding.