Pricing Agreement
EX-1.1.1 3 l29573aexv1w1w1.htm EX-1.1.1 EX-1.1.1
Exhibit 1.1.1
Pricing Agreement
Citigroup Global Markets Inc.
Greenwich Capital Markets, Inc.
Greenwich Capital Markets, Inc.
As Representatives of the several
Underwriters named in Schedule I hereto.
Underwriters named in Schedule I hereto.
January 9, 2008
Dear Sirs:
The Kroger Co., an Ohio corporation (the Company), and the Guarantors on Schedule A and on the signature pages hereto propose, subject to the terms and conditions stated herein and in the Underwriting Agreement, dated January 9, 2008 (the Underwriting Agreement), to issue and sell to the Underwriters named in Schedule I hereto (the Underwriters) the Securities (the Designated Securities) and related Guarantees specified in Schedule II hereto. Each of the provisions of the Underwriting Agreement is incorporated herein by reference in its entirety, and shall be deemed to be a part of this Agreement to the same extent as if such provisions had been set forth in full herein; and each of the representations and warranties set forth therein shall be deemed to have been made at and as of the date of this Pricing Agreement, except that each representation and warranty which refers to the Prospectus in Section 2 of the Underwriting Agreement shall be deemed to be a representation or warranty as of the date of the Underwriting Agreement in relation to the Prospectus (as therein defined), and also a representation and warranty as of the date of this Pricing Agreement in relation to the Prospectus as amended or supplemented relating to the Designated Securities and related Guarantees. Each reference to the Representatives herein and in the provisions of the Underwriting Agreement so incorporated by reference shall be deemed to refer to you. Unless otherwise defined herein, terms defined in the Underwriting Agreement are used herein as therein defined. The Representatives designated to act on behalf of each of the Underwriters of the Designated Securities and related Guarantees pursuant to Section 12 of the Underwriting Agreement and the address of the Representatives referred to in such Section 12 are set forth at the end of Schedule II hereto.
An amendment to the Registration Statement, or a supplement to the Prospectus, as the case may be, relating to the Designated Securities and related Guarantees, in the form heretofore delivered to you is now proposed to be filed with the Commission.
Subject to the terms and conditions set forth herein and in the Underwriting Agreement incorporated herein by reference, the Company agrees to issue and sell to each of the Underwriters, and each of the Underwriters agrees, severally and not jointly, to purchase from the Company, at the time and place and at the purchase price to the Underwriters, and under other terms and conditions set forth in Schedule II hereto, the principal amount of Designated Securities set forth opposite the name of such Underwriter in Schedule I hereto.
The Company understands that the Underwriters intend to make a public offering of the Securities as soon after the effectiveness of this Agreement as in the judgment of the Representatives is advisable, and initially to offer the Securities on the terms set forth in the Time of Sale information and the Prospectus. Schedule III hereto sets forth the Time of Sale Information made available at the Time of Sale.
If the foregoing is in accordance with your understanding, please sign and return to us ten counterparts hereof, and upon acceptance hereof by you, on behalf of each of the Underwriters, this letter and such acceptance hereof, including the provisions of the Underwriting Agreement incorporated herein by reference, shall constitute a binding agreement between each of the Underwriters, the Company and each of the Guarantors. It is understood that your acceptance of this letter on behalf of each of the Underwriters is or will be pursuant to the authority set forth in a form of Agreement among Underwriters, the form of which shall be submitted to the Company for examination upon request, but without warranty on the part of the Representatives as to the authority of the signers thereof.
Very Truly Yours, THE KROGER CO. Each of the Guarantors Listed on Schedule A hereto, as Guarantor of the Designated Securities | ||||
By: | /s/ Scott M. Henderson | |||
Name: | Scott M. Henderson | |||
Title: | Vice President/Treasurer | |||
THE KROGER CO. OF MICHIGAN as Guarantor of the Designated Securities | ||||
By: | /s/ Rick Going | |||
Name: | Rick Going | |||
Title: | President | |||
QUEEN CITY ASSURANCE, INC. as Guarantor of the Designated Securities RJD ASSURANCE, INC. as Guarantor of the Designated Securities VINE COURT ASSURANCE INCORPORATED as Guarantor of the Designated Securities | ||||
By: | /s/ Bruce M. Gack | |||
Name: | Bruce M. Gack | |||
Title: | Senior Vice President/Vice President | |||
ROCKET NEWCO, INC. as Guarantor of the Designated Securities HENPIL, INC. as Guarantor of the Designated Securities | ||||
By: | /s/ Kim Storch | |||
Name: | Kim Storch | |||
Title: | Vice President | |||
Citigroup Global Markets Inc. Greenwich Capital Markets, Inc. Banc of America Securities LLC J.P. Morgan Securities Inc. Lazard Capital Markets LLC Piper Jaffray & Co. Rabo Securities USA, Inc. BNY Capital Markets, Inc. CastleOak Securities, L.P. | ||
By: | Citigroup Global Markets Inc. | |
By: | /s/ Brian Bednarski | |
Name: Brian Bednarski Title: Managing Director | ||
By: | Greenwich Capital Markets, Inc. | |
By: | /s/ Steven B. Fitzpatrick | |
Name: Steven B. Fitzpatrick Title: Managing Director |
On behalf of each of the Underwriters
SCHEDULE A
Name of Guarantor | State of Organization | |
Alpha Beta Company | California | |
Bay Area Warehouse Stores, Inc. | California | |
Bell Markets, Inc. | California | |
Cala Co. | Delaware | |
Cala Foods, Inc. | California | |
CB&S Advertising Agency, Inc. | Oregon | |
Crawford Stores, Inc. | California | |
Dillon Companies, Inc. | Kansas | |
Dillon Real Estate Co., Inc. | Kansas | |
Distribution Trucking Company | Oregon | |
F4L L.P. | Ohio | |
FM, Inc. | Utah | |
FMJ, Inc. | Delaware | |
Food 4 Less GM, Inc. | California | |
Food 4 Less Holdings, Inc. | Delaware | |
Food 4 Less Merchandising, Inc. | California | |
Food 4 Less of California, Inc. | California | |
Food 4 Less of Southern California, Inc. | Delaware | |
Fred Meyer, Inc. | Delaware | |
Fred Meyer Jewelers, Inc. | California | |
Fred Meyer Stores, Inc. | Ohio | |
Hughes Markets, Inc. | California | |
Hughes Realty, Inc. | California | |
Inter-American Foods, Inc. | Ohio | |
Junior Food Stores of West Florida, Inc. | Florida | |
J.V. Distributing, Inc. | Michigan | |
KRGP Inc. | Ohio | |
KRLP Inc. | Ohio | |
The Kroger Co. of Michigan | Michigan | |
Kroger Dedicated Logistics Co. | Ohio | |
Kroger Group Cooperative, Inc. | Ohio | |
Kroger Limited Partnership I | Ohio | |
Kroger Limited Partnership II | Ohio | |
Kroger Texas L.P. | Ohio | |
Kwik Shop, Inc. | Kansas | |
Mini Mart, Inc. | Wyoming | |
Peytons-Southeastern, Inc. | Tennessee |
Quik Stop Markets, Inc. | California | |
Ralphs Grocery Company | Ohio | |
Second Story, Inc. | Washington | |
Smiths Beverage of Wyoming, Inc. | Wyoming | |
Smiths Food & Drug Centers, Inc. | Ohio | |
THGP Co., Inc. | Pennsylvania | |
THLP Co., Inc. | Pennsylvania | |
Topvalco, Inc. | Ohio | |
Turkey Hill L.P. | Pennsylvania |
SCHEDULE I
Underwriter | Principal Amount of 6.150% | |||
Senior Notes To Be Purchased | ||||
Citigroup Global Markets Inc. | $ | 206,250,000 | ||
Greenwich Capital Markets, Inc. | 187,500,000 | |||
J.P. Morgan Securities Inc. | 75,000,000 | |||
Banc of America Securities LLC | 75,000,000 | |||
Lazard Capital Markets LLC | 75,000,000 | |||
Rabo Securities USA, Inc. | 37,500,000 | |||
Piper Jaffray & Co. | 37,500,000 | |||
BNY Capital Markets, Inc. | 37,500,000 | |||
CastleOak Securities, L.P. | 18,750,000 | |||
Total | $ | 750,000,000 | ||
SCHEDULE II
Title of Designated Securities:
6.150% Senior Notes due 2020
Aggregate Principal Amount:
$750,000,000 of 6.150% Senior Notes due 2020
Price to Public:
99.749% of the principal amount of the 6.150% Senior Notes due 2020, plus accrued interest from January 16, 2008
Purchase Price by Underwriters:
99.074% of the principal amount of the 6.150% Senior Notes due 2020, plus accrued interest from January 16, 2008
Specified Funds for Payment of Purchase Price:
Immediately available funds
Indenture:
Indenture dated as of June 25, 1999, between the Company, the Guarantors and Firstar Bank, National Association, as Trustee, as supplemented by the First Supplemental Indenture, dated June 25, 1999, the Second Supplemental Indenture, dated June 25, 1999, the Third Supplemental Indenture, dated June 25, 1999, the Fourth Supplemental Indenture, dated September 22, 1999, the Fifth Supplemental Indenture, dated September 22, 1999, the Sixth Supplemental Indenture, dated September 22, 1999, the Seventh Supplemental Indenture, dated February 11, 2000, the Eighth Supplemental Indenture, dated February 11, 2000, the Ninth Supplemental Indenture, dated August 21, 2000, the Tenth Supplemental Indenture, dated May 11, 2001, the Eleventh Supplemental Indenture, dated May 11, 2001, the Twelfth Supplemental Indenture, dated August 16, 2001, the Thirteenth Supplemental Indenture, dated April 3, 2002, the Fourteenth Supplemental Indenture dated June 17, 2002, the Fifteenth Supplemental Indenture dated January 28, 2003, the Sixteenth Supplemental Indenture dated December 20, 2004, the Seventeenth Supplemental Indenture dated August 15, 2007 and the Eighteenth Supplemental Indenture dated January 16, 2008
Maturity:
The 6.150% Senior Notes due 2020 will mature on January 15, 2020
Interest Rates:
The 6.150% Senior Notes due 2020 will bear interest from January 16, 2008 at 6.150%
Interest Payment Dates:
Interest on the 6.150% Senior Notes due 2020 is payable semiannually on January 15 and July 15 of each year commencing on July 15, 2008
Redemption Provisions:
As described in the preliminary prospectus supplement dated January 9, 2008
Change of Control Put:
As described in the preliminary prospectus supplement dated January 9, 2008
Sinking Fund Provision:
No sinking fund provisions
Defeasance Provisions:
As described in the preliminary prospectus supplement dated January 9, 2008
Guarantees:
Guaranteed by the Guarantors set forth on the signature pages and Schedule A to the Pricing Agreement
Time of Delivery:
January 16, 2008
Closing Location:
Offices of Fried, Frank, Harris, Shriver & Jacobson LLP
One New York Plaza,
New York, New York 10004
One New York Plaza,
New York, New York 10004
Name and Address of Representatives:
Citigroup Global Markets Inc.
388/390 Greenwich Street
New York, NY 10013
388/390 Greenwich Street
New York, NY 10013
Greenwich Capital Markets, Inc.
600 Steamboat Road Greenwich, CT 06830
600 Steamboat Road Greenwich, CT 06830
Schedule III
Time of Sale Information
Time of Sale Information
1. | Preliminary Prospectus Supplement, dated January 9, 2008, including the base prospectus included therein, dated December 20, 2007 |
2. | Term sheet, dated January 9, 2008 |
Schedule IV
The Kroger Co.
Pricing Term Sheet
The Kroger Co.
Pricing Term Sheet
6.150% Notes due January 15, 2020
Issuer: | The Kroger Co. | |
Principal Amount: | $750,000,000 | |
Security Type: | Senior Note | |
Maturity: | January 15, 2020 | |
Coupon: | 6.150% | |
Price to Public: | 99.749% | |
Yield to Maturity: | 6.180% | |
Spread to Benchmark Treasury: | 2.40% | |
Benchmark Treasury: | 4.250% due November 15, 2017 | |
Benchmark Treasury Spot and Yield: | 103-26+, 3.780% | |
Interest Payment Dates: | January 15 and July 15, commencing July 15, 2008 | |
Make-Whole Call: | Treasury Rate plus 35 basis points | |
Trade Date: | January 9, 2008 | |
Settlement Date: | January 16, 2008 (T+5) | |
Denominations: | $2,000 x $1,000 | |
Ratings: | Baa2 (stable outlook, Moodys) / BBB-(positive outlook, S&P) / BBB (stable outlook, Fitch) | |
Joint Bookrunners: | Citigroup Global Markets Inc. Greenwich Capital Markets, Inc. | |
Co-Managers: | Banc of America Securities LLC | |
J.P. Morgan Securities Inc. | ||
Lazard Capital Markets LLC | ||
Piper Jaffray & Co. | ||
Rabo Securities USA, Inc. | ||
BNY Capital Markets, Inc. | ||
CastleOak Securities, L.P. |
Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Citigroup Global Markets Inc. collect at ###-###-#### or Greenwich Capital Markets, Inc. toll free at ###-###-####.
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