Issuer Free Writing Prospectus
Filed Pursuant to Rule 433
Registration Statement Number 333-215085

 

The Kroger Co.

 

 

Pricing Term Sheet

 

Dated July 17, 2017

 

Issuer:

 

The Kroger Co.

Security Type:

 

Senior Notes

Trade Date:

 

July 17, 2017

Settlement Date:

 

July 24, 2017 (T+5)

Denominations:

 

$2,000 x $1,000

Ratings (Moody’s / S&P / Fitch)*:

 

Baa1 / BBB / BBB

 

 

 

2.800% Senior Notes Due 2022

 

Principal Amount:

 

$400,000,000

Maturity Date:

 

August 1, 2022

Coupon:

 

2.800%

Benchmark Treasury:

 

UST 1.750% due June 30, 2022

Benchmark Treasury Price / Yield:

 

99-16 ¼ / 1.854%

Spread to Benchmark Treasury:

 

T + 95 basis points

Yield to Maturity:

 

2.804%

Price to Public:

 

99.981%

Interest Payment Dates:

 

February 1 and August 1, commencing on February 1, 2018

Make-Whole Call:

 

Treasury Rate plus 15 basis points (prior to July 1, 2022)

Par Call:

 

On or after July 1, 2022 (one month prior to maturity)

CUSIP/ISIN:

 

501044 DH1 / US501044DH11

 

 

 

3.700% Senior Notes Due 2027

 

 

 

Principal Amount:

 

$600,000,000

Maturity Date:

 

August 1, 2027

Coupon:

 

3.700%

Benchmark Treasury:

 

UST 2.375% due May 15, 2027

Benchmark Treasury Price / Yield:

 

100-19 / 2.307%

Spread to Benchmark Treasury:

 

T + 140 basis points

Yield to Maturity:

 

3.707%

Price to Public:

 

99.941%

Interest Payment Dates:

 

February 1 and August 1, commencing on February 1, 2018

 



 

Make-Whole Call:

 

Treasury Rate plus 25 basis points (prior to May 1, 2027)

Par Call:

 

On or after May 1, 2027 (three months prior to maturity)

CUSIP/ISIN:

 

501044 DJ7 / US501044DJ76

 

 

 

4.650% Senior Notes Due 2048

 

 

 

Principal Amount:

 

$500,000,000

Maturity Date:

 

January 15, 2048

Coupon:

 

4.650%

Benchmark Treasury:

 

UST 3.000% due February 15, 2047

Benchmark Treasury Price / Yield:

 

102-02+ / 2.895%

Spread to Benchmark Treasury:

 

T + 180 basis points

Yield to Maturity:

 

4.695%

Price to Public:

 

99.276%

Interest Payment Dates:

 

January 15 and July 15, commencing on January 15, 2018

Make-Whole Call:

 

Treasury Rate plus 30 basis points (prior to July 15, 2047)

Par Call:

 

On or after July 15, 2047 (six months prior to maturity)

CUSIP/ISIN:

 

501044 DK4 / US501044DK40

 

 

 

Joint Book-Running Managers:

 

 

 

 

 

2.800% Senior Notes Due 2022

 

 

 

Mizuho Securities USA LLC

 

 

Goldman Sachs & Co. LLC

 

 

U.S. Bancorp Investments, Inc.

 

 

Citigroup Global Markets Inc.

 

 

PNC Capital Markets LLC

 

 

Wells Fargo Securities, LLC

 

 

 

3.700% Senior Notes Due 2027

 

 

 

Mizuho Securities USA LLC

 

 

RBC Capital Markets, LLC

 

 

Wells Fargo Securities, LLC

 

 

Merrill Lynch, Pierce, Fenner & Smith

                      Incorporated

 

 

Fifth Third Securities, Inc.

 

 

MUFG Securities Americas Inc.

 

 

 

4.650% Senior Notes Due 2048

 

 

 

 

 

Mizuho Securities USA LLC

 

 

Merrill Lynch, Pierce, Fenner & Smith

                      Incorporated

 



 

 

 

Citigroup Global Markets Inc.

 

 

BB&T Capital Markets, a division of BB&T Securities, LLC

 

 

BNY Mellon Capital Markets, LLC

 

 

Santander Investment Securities Inc.

 

 

 

Co-Managers:

 

 

 

 

 

2.800% Senior Notes Due 2022

 

 

 

 

 

Merrill Lynch, Pierce, Fenner & Smith

                      Incorporated

 

 

BB&T Capital Markets, a division of BB&T Securities, LLC

 

 

BNY Mellon Capital Markets, LLC

 

 

Fifth Third Securities, Inc.

 

 

MUFG Securities Americas Inc.

 

 

RBC Capital Markets, LLC

 

 

Santander Investment Securities Inc.

 

 

The Williams Capital Group, L.P.

 

 

 

3.700% Senior Notes Due 2027

 

 

 

 

 

BB&T Capital Markets, a division of BB&T Securities, LLC

 

 

BNY Mellon Capital Markets, LLC

 

 

Citigroup Global Markets Inc.

 

 

Goldman Sachs & Co. LLC

 

 

PNC Capital Markets LLC

 

 

Santander Investment Securities Inc.

 

 

U.S. Bancorp Investments, Inc.

 

 

CastleOak Securities, L.P.

 

 

 

4.650% Senior Notes Due 2048

 

 

 

Fifth Third Securities, Inc.

 

 

Goldman Sachs & Co. LLC

 

 

MUFG Securities Americas Inc.

 

 

PNC Capital Markets LLC

 

 

RBC Capital Markets, LLC

 

 

U.S. Bancorp Investments, Inc.

 

 

Wells Fargo Securities, LLC

 

 

CastleOak Securities, L.P.

 


*Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.

 

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 EDGAR on the SEC Web site at www.sec.gov. 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 Mizuho Securities USA LLC toll-free at 1-866-271-7403, Citigroup Global Markets Inc. toll-free at 1-800-831-9146, Goldman Sachs & Co. LLC toll-free at 1-866-471-2526, Merrill Lynch, Pierce, Fenner & Smith Incorporated toll-free at 1-800-294-1322, RBC Capital Markets, LLC toll-free at 1-866-375- 6829, U.S. Bancorp Investments, Inc. toll-free at 1-877-558-2607, or Wells Fargo Securities, LLC toll-free at 1-800-645-3751.

 

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