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Exhibit 1.1.2
Pricing Agreement
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XXXXXXX, XXXXX & CO.
As Representatives of the several
Underwriters named in Schedule II hereto,
August 9, 2001
Dear Sirs:
The Kroger Co., an Ohio corporation (the "Company"), and the
Guarantors on Schedule I and on the signature pages hereto propose, subject to
the terms and conditions stated herein and in the Underwriting Agreement, dated
August 9, 2001 (the "Underwriting Agreement"), to issue and sell to the
Underwriters named in Schedule II hereto (the "Underwriters") the Securities
(the "Designated Securities") and related Guarantees specified in Schedule III
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 III 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 III hereto, the principal amount of Designated
Securities set forth opposite the name of such Underwriter in Schedule II
hereto.
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If the foregoing is in accordance with your understanding,
please sign and return to us six 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.
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Very Truly Yours,
Attest: THE KROGER CO.
Each of the Guarantors Listed on Schedule I
hereto, as Guarantor of the Designated
Securities
By:
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Assistant Secretary/Secretary Name: Xxxx X. Xxxxxxx
Title: Senior Vice President/Vice
President
Attest: RJD ASSURANCE, INC.
as Guarantor of the Designated Securities
VINE COURT ASSURANCE INCORPORATED,
as Guarantor of the Designated Securities
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Treasurer By:
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Name: Xxxxx X. Xxxx
Title: Senior Vice President/Vice
President
RICHIE'S INC., as Guarantor of the
Designated Securities
By:
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Name: Xxxxx X. Xxxxxx
Title: Vice President and Secretary
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ROCKET NEWCO, INC.,
as Guarantor of the Designated Securities
HENPIL, INC.,
as Guarantor of the Designated Securities
By:
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Name: Xxxxxx XxXxxxxx
Title: Vice President and Xxxxxxxxx
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Xxxxxxx, Xxxxx & Co.
By:
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Xxxxxxx, Xxxxx & Co.
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SCHEDULE I
Guarantors
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Name of Guarantor State of Organization
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Alpha Beta Company California
Bay Area Warehouse Stores, Inc. California
Xxxx Markets, Inc. California
Cala Co. Delaware
Cala Foods, Inc. California
CB&S Advertising Agency, Inc. Oregon
Xxxxxxxx Stores, Inc. California
Xxxxxx Companies, Inc. Kansas
Xxxxxx Real Estate Co., Inc. Kansas
Distribution Trucking Company Oregon
Drugs Distributors, Inc. Indiana
FM Holding Corporation Delaware
FM, Inc. Utah
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
Xxxx Xxxxx, Inc. Delaware
Xxxx Xxxxx Jewelers, Inc. California
Xxxx Xxxxx of Alaska, Inc. Alaska
Xxxx Xxxxx of California, Inc. California
Xxxx Xxxxx Stores, Inc. Delaware
Grand Central, Inc. Utah
Xxxxxx Markets, Inc. California
Xxxxxx 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
Kroger Dedicated Logistics Co. Ohio
Kroger Limited Partnership I Ohio (limited partnership)
Kroger Limited Partnership II Ohio (limited partnership)
Kroger Texas L.P. Ohio (limited partnership)
KU Acquisition Corporation Washington
Kwik Shop, Inc. Kansas
Mini Mart, Inc. Wyoming
Peyton's-Southeastern, Inc. Tennessee
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Name of Guarantor State of Organization
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QFC Sub, Inc. Washington
Quality Food Centers, Inc. Washington
Quality Food Holdings, Inc. Delaware
Quality Food, Inc. Delaware
Quik Stop Markets, Inc. California
Ralphs Grocery Company Delaware
Roundup Co. Washington
Second Story, Inc. Washington
Xxxxx'x Beverage of Wyoming, Inc. Wyoming
Xxxxx'x Food & Drug Centers, Inc. Delaware
The Kroger Co. of Michigan Michigan
THGP Co., Inc. Pennsylvania
THLP Co., Inc. Pennsylvania
Topvalco, Inc. Ohio
Turkey Hill, L.P. Pennsylvania (limited partnership)
Xxxxx Aircraft, Inc. Kansas
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SCHEDULE II
UNDERWRITER PRINCIPAL AMOUNT OF DESIGNATED
SECURITIES TO BE PURCHASED
Xxxxxxx, Sachs & Co. $250,000,000
Total $250,000,000
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SCHEDULE III
TITLE OF DESIGNATED SECURITIES:
Puttable Reset Securities PURS(SM) due August 16, 2012
AGGREGATE PRINCIPAL AMOUNT:
$250,000,000
PRICE TO PUBLIC:
100% of the principal amount of the Designated Securities, plus accrued
interest from August 16, 2001.
PURCHASE PRICE BY UNDERWRITERS:
99.750% of the principal amount of the Designated Securities, plus accrued
interest from August 16, 2001.
SPECIFIED FUNDS FOR PAYMENT OF PURCHASE PRICE:
Immediately available funds
INDENTURE:
Indenture dated 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 and the
Twelfth Supplemental Indenture, dated August 16, 2001.
MATURITY:
August 16, 2012
INTEREST RATES:
A floating rate as described under "Interest Rate" in the Prospectus
Supplement dated August 9, 2001 from and including August 16, 2001 to but
excluding August 16, 2002 and upon such date (or the next business day)
reset so as to equal a fixed rate as described under "Reset of Interest
Rate," in the Prospectus Supplement dated August 9, 2001.
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From August 16, 2001, to but excluding August 16, 2002, interest will be
calculated on a quarterly basis assuming a year of 360 days with an actual
of number of days per quarterly period.
From august 16, 2002 to but excluding August 16, 2012, interest will be
calculated on a semiannual basis assuming a year of 360 days with each
month consisting of 30 days.
INTEREST PAYMENT DATES:
Through August 16, 2002: November 16, 2001, February 16, 2002, May 16,
2002 and August 16, 2002, commencing November 16, 2001.
After August 16, 2002: February 16 and August 16, commencing February 16,
2003.
REDEMPTION PROVISIONS:
As described in the Prospectus Supplement dated August 9, 2001.
SINKING FUND PROVISION:
No sinking fund provisions.
CALL OPTION:
As described in the Prospectus Supplement dated August 9, 2001, under
the caption "Description of PURS--Call Option".
PUT OPTION:
As described in the Prospectus Supplement dated August 9, 2001, under
the caption "Description of PURS--Put Option".
DEFEASANCE PROVISIONS:
As described in the Prospectus Supplement dated August 9, 2001.
GUARANTEES:
Guaranteed by the Guarantors set forth on the signature pages and Schedule
I to the Pricing Agreement.
TIME OF DELIVERY:
August 16, 2001
CLOSING LOCATION:
Offices of Fried, Frank, Harris, Xxxxxxx & Xxxxxxxx
Xxx Xxx Xxxx Xxxxx,
Xxx Xxxx, Xxx Xxxx 00000
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NAME AND ADDRESS OF REPRESENTATIVES:
Xxxxxxx, Sachs & Co.
00 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx
