Bonds of Supervalu Inc. (SVU:US) rose the most since they were issued three years ago after the third- largest U.S. grocery store chain said it’s received a “number of indications of interest” as it conducts a review of strategic options.
The company is in “active dialogue” with several parties, the Eden Prairie, Minnesota-based company said yesterday in a statement. The talks may not lead to any sale, the company said.
Supervalu’s $1 billion of 8 percent bonds have climbed 5.5 cents since Oct. 17 to 89.75 cents on the dollar to yield 11.6 percent at 11:26 a.m. in New York, according to Trace, the bond- price reporting system of the Financial Industry Regulatory Authority. That’s the biggest two-day gain for the securities since they were offered in April 2009, data compiled by Bloomberg show.
The supermarket chain reported sales (SVU:US) yesterday that dropped 4.6 percent in its fiscal second quarter, the 14th straight quarterly decline. Supervalu has $3.9 billion of bonds outstanding (SVU:US), Bloomberg data show.
The company has 1,099 traditional retail stores such as Jewel-Osco and Albertsons and has 1,341 Save-A-Lot discount locations.
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