Transaction Is First Significant High-Yield Issue Following September 11
Tragedy
DALLAS, Oct. 5 /PRNewswire/ -- Fleming Companies, Inc. (NYSE: FLM)
announced today that it has agreed to sell $150 million principal amount of
10-5/8% Senior Subordinated Notes through a private placement. The notes will
be sold as an add-on to the company's existing $250 million Senior
Subordinated Notes due 2007. Fleming expects to close the transaction on or
about October 15, 2001.
The net proceeds from this private placement, which will total
approximately $146 million prior to transaction fees and expenses, will be
used to repay amounts outstanding under the company's revolving credit
facility. "This transaction is significant in a number of ways," said
Neal J. Rider, executive vice president and chief financial officer. "It
demonstrates that even in challenging economic times, the American capital
markets system is vibrant and supportive of select credit issues.
Additionally, the transaction increases the company's capacity to pursue
growth through new customers and select acquisitions."
The notes will be offered to qualified institutional buyers under Rule
144A and to persons outside the United States under Regulation S. The notes
will not be registered under the Securities Act of 1933, as amended, and
unless so registered, may not be offered or sold in the United States except
pursuant to an exemption from or in a transaction not subject to, the
registration requirements of the Securities Act and applicable state
securities laws. This press release shall not constitute an offer to sell or
the solicitation of an offer to buy, nor shall there be any sale of the notes
in any state in which such offer, solicitation, or sale would be unlawful
prior to registration or qualification under the securities laws of any such
state.
Fleming is the industry leader in distribution and has a growing presence
in value retailing. Fleming's primary business is buying and selling
merchandise. The company serves approximately 3,000 supermarkets,
6,800 convenience stores and more than 2,000 supercenters, discount, limited
assortment, drug, specialty, and other businesses across the country. To
learn more about Fleming, visit our Web site at http://www.fleming.com .
Any statements in this press release that are not historical facts are
forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. These forward-looking statements are
subject to risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements. For a description of
important factors that could cause actual results to differ from those
contained in the forward-looking statements, see the reports and documents
Fleming files from time to time with the Securities and Exchange Commission.
Fleming is under no obligation to update or alter its forward-looking
statements.
CONTACTS:
(Media) Shane Boyd 972.906.8824
(Media) Randy Hatcher 972.906.8823
(Investors-Equity) Meredith Anderson 972.906.8592
(Investors-Debt) Matt Hildreth 972.906.8126
SOURCE Fleming
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Related links:
http://www.fleming.com
CONTACT:
media, Shane Boyd, +1-972-906-8824, or Randy
Hatcher, +1-972-906-8823, or investors-equity, Meredith Anderson,
+1-972-906-8592, or investors-debt, Matt Hildreth,
+1-972-906-8126, all of Fleming
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