Safeway Inc. Signs New Four-Year Credit Agreement

Safeway SWY announced today that it has entered into a new four-year, $1.5 billion revolving credit facility, effective June 1, 2011. The facility replaces a $1.6 billion facility that would have matured on June 1, 2012. Up to $250 million of the revolving credit facility is available for borrowings by Safeway's Canadian subsidiary. The facility will be used for general corporate purposes, including commercial paper backstop. Twenty-five financial institutions will initially participate in the facility. The bank group is led by Bank of America Merrill Lynch and J.P. Morgan as Joint Bookrunners and Joint Lead Arrangers, and Deutsche Bank, U.S. Bank, BNP Paribas and Wells Fargo as Joint Lead Arrangers. Deutsche Bank is also acting as the Domestic and Canadian Administrative Agent.