Belgium-based supermarkets group Delhaize said on Wednesday that its American subsidiary would buy back up to $1.1 billion (818 million euros) of its own debt, financed by the issue of new securities.
It said it would purchase notes due in 2011 and 2027 and debentures due in 2031 and that it would launch its tender offer on Wednesday with settlement expected two business days after June 26.
To finance the buyback it said it would issue a series of euro-denominated senior notes due in 2014 and a series of U.S. dollar denominated senior notes due in 2017.
Delhaize, which makes about 80% of its sales in the United States, said the buyback would result in a one-off charge in the second quarter of 2007 but that it would start to have a positive effect on earnings starting in 2008.
Banc of America Securities and Merrill Lynch are the dealer managers for the tender offer while Global Bondholders Services Corporation is the information agent and depositary.