Albertsons Companies (ACI)

• Albertsons Companies, Inc. and its co-issuers issued $1.5 billion in aggregate principal amount of new unsecured Senior Notes on November 10, 2025, consisting of $700,000,000 of 5.500% Senior Notes due 2031 and $800,000,000 of 5.750% Senior Notes due 2034.
• Interest on both series of notes will be paid semiannually on May 15 and November 15, commencing May 15, 2026.
• The notes include various optional redemption provisions and a requirement for the co-issuers to offer to repurchase the notes at 101% of the principal amount plus accrued interest upon a "change of control triggering event".

The key terms of the Senior Notes are summarized below:

• Albertsons Companies, Inc. announced the pricing of an upsized private offering totaling $1.5 billion in new senior notes, consisting of $700 million at 5.500% due 2031 and $800 million at 5.750% due 2034.
• The offering is anticipated to close around November 10, 2025.
• Proceeds from the offering, combined with cash, will be used to redeem $750 million of 3.250% senior notes due 2026 and to repay a portion of borrowings under its asset-based revolving credit agreement.

• Albertsons Companies, Inc. (ACI) entered into an accelerated share repurchase (ASR) agreement for $750 million of its common stock.
• The company's Board of Directors increased the total share repurchase program authorization from $2 billion to $2.75 billion, inclusive of the ASR agreement.
• On October 15, 2025, the company will pay $750 million to the dealer and expects an initial delivery of approximately 80% of the shares underlying the ASR agreement.
• The ASR transactions are anticipated to be completed by no later than the first quarter of 2026.
• The CEO stated that this ASR represents approximately 8% of the company's current outstanding shares.

• For Q2 2025, ACI reported Identical Sales growth of +2.2% and Digital Sales growth of +23%.
• The company's Adjusted EPS was $0.44 and Adjusted EBITDA reached $848 million in Q2 2025.
• ACI is focused on strategic initiatives including driving customer growth through digital engagement, building its media business, enhancing the customer value proposition, and modernizing capabilities.
• The company aims to unlock $1.5 billion in savings through transformational productivity efforts.

• Albertsons Companies reported Q2 2025 adjusted identical sales growth of 2.2%, driven by 23% year-over-year digital sales growth and 19% year-over-year pharmacy growth.
• The company increased its share repurchase authorization from $2 billion to $2.75 billion and executed a $750 million accelerated share repurchase.
• For fiscal year 2025, Albertsons updated its outlook, increasing the identical sales range to 2.2% to 2.75% and adjusted EPS to $2.16 to $2.19, while maintaining adjusted EBITDA guidance of $3.8 billion to $3.9 billion.
• Strategic investments in digital, AI (including a partnership with OpenAI), and productivity initiatives are key, with $1.5 billion in productivity savings expected from fiscal 2025 through fiscal year 2027.