Albertsons 2003 Annual Report Download - page 58

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SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
DEBT
February 22,
2003
February 23,
2002
(In thousands)
7.875% promissory note due fiscal 2010 $ 350,000 $ 350,000
7.5% promissory note due fiscal 2013 300,000 —
7.625% promissory note due fiscal 2005 250,000 250,000
8.875% promissory note due fiscal 2023 100,000 100,000
Zero-coupon convertible debentures 226,152 216,345
6.23%-6.69% medium-term notes due fiscal 2006-2007 103,500 103,500
7.8% promissory note due fiscal 2003 — 300,000
9.75% senior notes — 174,098
Variable rate to 7.125% industrial revenue bonds 70,530 71,530
8.28%-9.96% promissory notes due fiscal 2004-2010 26,675 32,420
7.78%, 8.02% and 8.57% obligations with quarterly payments of principal
and interest due fiscal 2005 through 2007 47,134 59,845
Other debt 32,062 10,956
1,506,053 1,668,694
Less current maturities 31,124 326,266
Long-term debt $1,474,929 $1,342,428
Aggregate maturities of long-term debt during the next five fiscal years are:
(In thousands)
2004 $ 31,124
2005 271,843
2006 63,218
2007 73,568
2008 5,059
The debt agreements contain various financial covenants including maximum permitted leverage, minimum
net worth, minimum coverage and asset coverage ratios as defined in the company’s debt agreements. The
company has met the financial covenants under the debt agreements as of February 22, 2003.
In May 2002, the company completed the issuance of the $300.0 million 10-year 7.50% Senior Notes. A
portion of the proceeds was used to redeem the company’s 9.75% Senior Notes due fiscal 2005 on June 17, 2002.
In November 2002, the company also retired a $300.0 million 7.8% note that matured.
In August 2002, the company renewed its annual accounts receivable securitization program, under which
the company can borrow up to $200.0 million on a revolving basis, with borrowings secured by eligible accounts
receivable. Outstanding borrowings under this program at February 22, 2003 and February 23, 2002, were
$80.0 million and $0, respectively, and are reflected in Notes payable in the Consolidated Balance Sheets. As of
February 22, 2003 there was $264.4 million of accounts receivable pledged as collateral. The average short-term
interest rate on the outstanding borrowings was 1.76% for fiscal 2003.
In April 2002, the company finalized a new three-year, unsecured $650.0 million revolving credit agreement
with rates tied to LIBOR plus 0.650 to 1.400 percent, based on the company’s credit ratings. The agreement
F-23