Ingles Markets, Incorporated Announces Closing of its Senior Notes Offering

Rhea-AI Summary

Ingles Markets, Incorporated (NASDAQ: IMKTA) has successfully closed a private offering of $350 million in 4.000% Senior Notes maturing in 2031. The proceeds will be utilized to fully redeem its existing 5.75% Senior Notes due 2023, repay outstanding credit facility balances, and cover related fees. The Notes are unregistered under the Securities Act and are not available for sale in the U.S. without proper registration or exemption. Forward-looking statements in the release highlight potential risks affecting anticipated results.

Positive

• Successful closing of a $350 million private offering of Senior Notes.
• Proceeds will be used to redeem higher-interest Existing Notes, potentially improving the company’s debt structure.

Negative

• The Notes remain unregistered, limiting immediate market opportunities.
• Forward-looking statements indicate risks and uncertainties that may hinder achieving projected results.

Ingles Markets, Incorporated (“Ingles” or the “Company”) (NASDAQ: IMKTA) today announced the closing of its previously announced private offering of $350.0 million aggregate principal amount of 4.000% Senior Notes due 2031 (the “Notes”).

The Company will use the net proceeds from the offering to redeem in full the Company’s issued and outstanding 5.75% Senior Notes due 2023 (the “Existing Notes”), repay the outstanding balance under its existing credit facility, and pay related fees and expenses. This press release does not constitute a notice of redemption with respect to the Existing Notes.

The Notes have not been, and will not be, registered under the Securities Act of 1933, as amended, or any other securities laws, and the Notes may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from registration requirements.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. This press release is not a notice of redemption for the Existing Notes.

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements include, but are not limited to, statements concerning the Company’s plans, objectives, expectations and intentions and other statements that are not historical or current fact. The words “expect,” “anticipate,” “intend,” “plan,” “likely,” “goal,” “believe,” “seek,” “will,” “may,” “would,” “should” and similar expressions are intended to identify forward-looking statements. These views involve risks and uncertainties that are difficult to predict and, accordingly, the Company’s actual results may differ materially from the results discussed in its forward-looking statements. The Company’s forward-looking statements contained herein speak only as of the date of this press release. Factors or events the Company cannot predict, including those described in the risk factors contained in its filings with the Securities and Exchange Commission, may cause the Company’s actual results to differ from those expressed in forward-looking statements. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be achieved, and the Company undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise.

Ingles Markets, Incorporated is a leading grocer with operations in six southeastern states. Headquartered in Asheville, North Carolina, the Company operates 198 supermarkets. In conjunction with its supermarket operations, the Company operates neighborhood shopping centers, most of which contain an Ingles supermarket. The Company also owns a fluid dairy facility that supplies Ingles supermarkets and unaffiliated customers. To learn more about Ingles Markets visit ingles-markets.com.

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FAQ

What is the amount and interest rate of the new Senior Notes issued by Ingles Markets (IMKTA)?

Ingles Markets issued $350 million of 4.000% Senior Notes due 2031.

When are the new Senior Notes issued by Ingles Markets due?

The new Senior Notes are due in 2031.

What will Ingles Markets do with the proceeds from the Senior Notes offering?

The proceeds will redeem existing 5.75% Senior Notes due 2023 and repay credit facility balances.

Are the new Senior Notes registered under the Securities Act?

No, the Notes have not been registered under the Securities Act of 1933.

What risks are associated with the forward-looking statements in Ingles Markets' press release?

The risks include uncertainties that may cause actual results to differ from projected outcomes.