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The St. Louis Business Journal reports that Supervalu yesterday said that it had "completed an amendment of its $1.5 billion senior secured term loan agreement that will permit it to make transactions related to its planned spinoff of the Earth City-based Save-A-Lot grocery chain."

The story goes on to say that "in the event the Save-A-Lot spinoff is consummated, the amendment requires Save-A-Lot to issue a minimum of $400 million of long-term debt and that Supervalu's term loan balance be reduced by at least $350 million, including with net cash proceeds of the Save-A-Lot debt issuance.

"Under the amended loan agreement, Supervalu also would be required to keep a certain minimum equity stake in the spun-off, publicly traded Save-A-Lot, officials said in a regulatory filing Monday."
KC's View:
I suspect the folks at Save-A-Lot are anxious to have this all resolved and off their plate, so they can get 100 percent focused on the serious business of upgrading a chain of stores that needs it if the company is to compete effectively in a tough environment that's only going to get tougher.