Pricing Agreement
Exhibit 1.1.1
X.X. Xxxxxx Securities Inc.
Banc of America Securities LLC
Banc of America Securities LLC
As Representatives of the several
Underwriters named in Schedule I hereto.
Underwriters named in Schedule I hereto.
August 8, 2007
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 August 8, 2007 (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/ Xxxx X. Xxxxxxx | |||||
Name: | Xxxx X. Xxxxxxx | |||||
Title: | Executive Vice President/President/ | |||||
Vice 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/ Xxxxx X. Xxxx | |||||
Name: | Xxxxx X. Xxxx | |||||
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/ Xxx Xxxxxx | |||||
Name: | Xxx Xxxxxx | |||||
Title: | Vice President |
X.X. Xxxxxx Securities Inc.
Banc of America Securities LLC
Barclays Capital Inc.
Citigroup Global Markets Inc.
Greenwich Capital Markets, Inc.
Lazard Capital Markets LLC
Xxxxx Fargo Securities, LLC
The Xxxxxxxx Capital Group, L.P.
Banc of America Securities LLC
Barclays Capital Inc.
Citigroup Global Markets Inc.
Greenwich Capital Markets, Inc.
Lazard Capital Markets LLC
Xxxxx Fargo Securities, LLC
The Xxxxxxxx Capital Group, L.P.
By: X.X. Xxxxxx Securities Inc.
By: | /s/ Xxxxxxx X. Xxxxxxx | |||
Name: | Xxxxxxx X. Xxxxxxx | |||
Title: | Vice President | |||
By: | Banc of America Securities LLC | |||
By: | /s/ Xxxxxx X. Xxxxxxx | |||
Name: | Xxxxxx X. Xxxxxxx | |||
Title: | Vice President | |||
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 | |
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 | |
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 | |
Xxxx Xxxxx, Inc.
|
Delaware | |
Xxxx Xxxxx Jewelers, Inc.
|
California | |
Xxxx Xxxxx Stores, Inc.
|
Ohio | |
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 | |
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 | |
Peyton’s-Southeastern, Inc.
|
Tennessee |
Name of Guarantor | State of Organization | |
Quik Stop Markets, Inc.
|
California | |
Ralphs Grocery Company
|
Ohio | |
Second Story, Inc.
|
Washington | |
Xxxxx’x Beverage of Wyoming, Inc.
|
Wyoming | |
Xxxxx’x Food & Drug Centers, Inc.
|
Ohio | |
THGP Co., Inc.
|
Pennsylvania | |
THLP Co., Inc.
|
Pennsylvania | |
Topvalco, Inc.
|
Ohio | |
Turkey Xxxx X.X.
|
Pennsylvania |
SCHEDULE I
Principal Amount of 6.400% | ||||
Underwriter | Senior Notes To Be Purchased | |||
X.X. Xxxxxx Securities Inc. |
$ | 84,000,000 | ||
Banc of America Securities LLC |
75,000,000 | |||
Citigroup Global Markets Inc. |
34,500,000 | |||
Lazard Capital Markets LLC |
34,500,000 | |||
Greenwich Capital Markets, Inc. |
34,500,000 | |||
Barclays Capital Inc. |
15,000,000 | |||
Xxxxx Fargo Securities, LLC |
15,000,000 | |||
The Xxxxxxxx Capital Group, L.P. |
7,500,000 | |||
Total |
$ | 300,000,000 | ||
SCHEDULE II
Title of Designated Securities:
6.400% Senior Notes due 2017
Aggregate Principal Amount:
$300,000,000 of 6.400% Senior Notes due 2017
Price to Public:
99.440% of the principal amount of the 6.400% Senior Notes due 2017, plus accrued interest
from August 15, 2007
Purchase Price by Underwriters:
98.790% of the principal amount of the 6.400% Senior Notes due 2017, plus accrued interest
from August 15, 2007
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 and the Seventeenth
Supplemental Indenture dated August 15, 2007
Maturity:
The 6.400% Senior Notes due 2017 will mature on August 15, 2017
Interest Rates:
The 6.400% Senior Notes due 2017 will bear interest from August 15, 2007 at 6.400%.
Interest Payment Dates:
Interest on the 6.400% Senior Notes due 2017 is payable semiannually on February 15 and
August 15 of each year commencing on February 15, 2008
Redemption Provisions:
As described in the preliminary prospectus supplement dated August 8, 2007.
Change of Control Put:
As described in the preliminary prospectus supplement dated August 8, 2007
Sinking Fund Provision:
No sinking fund provisions.
Defeasance Provisions:
As described in the preliminary prospectus supplement dated August 8, 2007.
Guarantees:
Guaranteed by the Guarantors set forth on the signature pages and Schedule A to the Pricing
Agreement.
Time of Delivery:
August 15, 2007
Closing Location:
Offices of Fried, Frank, Harris, Xxxxxxx & Xxxxxxxx LLP
Xxx Xxx Xxxx Xxxxx,
Xxx Xxxx, Xxx Xxxx 00000
Xxx Xxx Xxxx Xxxxx,
Xxx Xxxx, Xxx Xxxx 00000
Name and Address of Representatives:
X.X. Xxxxxx Securities Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Banc of America Securities LLC
0 Xxxx 00xx Xx
Xxx Xxxx, XX 00000
0 Xxxx 00xx Xx
Xxx Xxxx, XX 00000
Schedule III
Time of Sale Information
1. | Preliminary Prospectus Supplement, dated August 8, 2007, including the base prospectus included therein, dated December 9, 2004 | |
2. | Term sheet, dated August 8, 2007 |
Schedule IV
The Kroger Co.
Pricing Term Sheet
6.400% Notes due August 15, 2017
Issuer: |
The Kroger Co. | |
Principal Amount: |
$300,000,000 | |
Security Type: |
Senior Note | |
Maturity: |
August 15, 2017 | |
Coupon: |
6.400% | |
Price to Public: |
99.440% | |
Yield to Maturity: |
6.477% | |
Spread to Benchmark Treasury: |
1.60% | |
Benchmark Treasury: |
4.500% due May 15, 2017 | |
Benchmark Treasury Spot and Yield: |
97 – 3, 4.877% | |
Interest Payment Dates: |
February 15 and August 15, commencing | |
February 15, 2008 | ||
Make-Whole Call: |
Treasury Rate plus 25 basis points | |
Trade Date: |
August 8, 2007 | |
Settlement Date: |
August 15, 2007 (T+5) | |
Denominations: |
$2,000 x $1,000 | |
Ratings: |
Baa2 (stable outlook, Xxxxx’x) / BBB- | |
(positive outlook, S&P) / BBB (stable outlook, | ||
Fitch) | ||
Joint Bookrunners: |
X.X. Xxxxxx Securities Inc. | |
Banc of America Securities LLC | ||
Co-Managers: |
Citigroup Global Markets Inc. | |
Greenwich Capital Markets, Inc. | ||
Lazard Capital Markets LLC | ||
Barclays Capital Inc. | ||
Xxxxx Fargo Securities, LLC | ||
The Xxxxxxxx Capital Group, L.P. |
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
XXXXX on the SEC Web site at xxx.xxx.xxx. 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
X.X. Xxxxxx Securities Inc. collect at 000-000-0000 or Banc of America Securities LLC toll free at
1-800-294-1322.
Any disclaimer or other notice that may appear below is not applicable to this communication and
should be disregarded. Such disclaimer or notice was automatically generated as a result of this
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