Kroger Mergers and Acquisitions Presentation Deck
Financing and Capital Allocation
Financing
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Kroger has $17.4B bridge commitment from Citi and Wells Fargo
Will fund transaction through cash and proceeds from new debt
financing
Plan to hedge interest rate risk on new debt issuance
Existing Albertsons bonds will roll into pro forma capital structure
and rank pari passu with Kroger bonds
Engaged with rating agencies and strongly committed to current
investment grade credit rating
Kroger
Albertsons
Companies
Capital Allocation
Will continue to invest in business through high return
projects that support go-to-market strategy
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• Will continue to pay quarterly dividend and expect to increase
dividend over time, subject to Board approval
Have already paused share repurchase program to prioritize
de-leveraging
Expects to achieve 2.5x net debt to EBITDA leverage ratio
within first 18-24 months post-close
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