false 0001646972 0001646972 2022-09-09 2022-09-09

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

September 9, 2022

 

 

Albertsons Companies, Inc.

(Exact Name of Registrant as Specified in Charter)

 

 

 

Delaware   001-39350   47-4376911
(State or Other Jurisdiction
of Incorporation)
 

(Commission

File Number)

  (IRS Employer
Identification No.)

250 Parkcenter Blvd.

Boise, Idaho 83706

(Address of principal executive office and zip code)

(208) 395-6200

(Registrant’s telephone number, including area code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

  

Trading
Symbol(s)

  

Name of each exchange

on which registered

Class A common stock, $0.01 par value    ACI    New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 1.01

Entry into a Material Definitive Agreement.

As disclosed on a Current Report on Form 8-K filed with the Securities and Exchange Commission on June 22, 2022, on June 21, 2022, entities affiliated with Albertsons Companies, Inc.’s (the “Company”) five largest stockholders, Cerberus Capital Management, L.P., Kimco Realty Corporation, Klaff Realty, L.P., Lubert-Adler Partners and Jubilee Limited Partnership (each, a “Sponsor” and collectively, the “Sponsors”), entered into an agreement (the “Extended Lock-Up Agreement”) pursuant to which each Sponsor agreed to restrictions on its ability to sell or transfer shares of the Company’s Class A Common Stock that it owns through September 10, 2022, the end of the Company’s second fiscal quarter (the “Extended Lock-Up Period”).

On September 9, 2022, the Company and Cerberus Capital Management, L.P., Klaff Realty, L.P., Lubert-Adler Partners and Jubilee Limited Partnership entered into Amendment No. 1 (the “Amendment”) to the Extended Lock-Up Agreement providing for the Extended Lock-Up Period to be further extended until the sooner of (i) the release of the Company’s earnings for the second fiscal quarter or (ii) October 18, 2022.

Furthermore, on September 9, 2022, the Company and certain funds associated with HPS Investment Partners, LLC (“HPS”) entered into a lock-up agreement with terms and conditions substantially similar to the Extended Lock-Up Agreement as amended by the Amendment (the “Preferred Stock Lock-Up Agreement”). Pursuant to the Preferred Stock Lock-Up Agreement, HPS agreed to restrictions on its ability to sell or transfer shares of the Company’s Series A Preferred Stock and Class A Common Stock that it owns until the sooner of (i) the release of the Company’s earnings for the second fiscal quarter or (ii) October 18, 2022.

Collectively, Cerberus Capital Management, L.P., Klaff Realty, L.P., Lubert-Adler Partners, Jubilee Limited Partnership and HPS beneficially own, in the aggregate, approximately 360,114,311 shares of Class A Common Stock on a fully-converted basis as of the date of this filing.

The foregoing description does not purport to be complete and is qualified in its entirety by reference to (i) the Amendment, which is filed as Exhibit 10.1 hereto and incorporated by reference herein and (ii) the Preferred Stock Lock-Up Agreement, which is filed as Exhibit 10.2 hereto and incorporated by reference herein.

 

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits.

 

10.1    Amendment No. 1, dated September 9, 2022, to the Lock-Up Agreement dated June 21, 2022 by and between Albertsons Companies, Inc. and the other parties thereto
10.2    Lock-Up Agreement, dated September 9, 2022, by and between Albertsons Companies, Inc. and the other parties thereto
104    Cover Page Interactive Data File (embedded within the Inline XBRL document)

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

   

Albertsons Companies, Inc.

(Registrant)

Dated: September 9, 2022     By:  

/s/ Juliette W. Pryor

    Name:   Juliette W. Pryor
    Title:   Executive Vice President, General Counsel and Secretary

Exhibit 10.1

Execution Version

AMENDMENT NO. 1 TO LOCK-UP AGREEMENT

Amendment No. 1, dated as of September 9, 2022 (this “Amendment”), to the Lock-Up Agreement dated as of June 21, 2022 (the “Lock-Up Agreement”), by and between Albertsons Companies, Inc. (the “Company”) and the undersigned investor (the “Investor”).

WHEREAS, the Company and the Investor are party to the Lock-Up Agreement containing certain terms and conditions related to the sale and transfer of the Shares;

WHEREAS, the terms and conditions of the Lock-Up Agreement will expire on at 5:00 P.M. on September 10, 2022; and

WHEREAS, the Company and the Investor desire to extend the Lock-Up Period as set forth in the Amendment.

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, the parties hereto agree as follows:

SECTION 1. Defined Terms. Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Lock-Up Agreement.

SECTION 2. Amendment.

Paragraph 3 of the Lock-Up Agreement is hereby amended and restated in its entirety as set forth below:

3. The “Lock-Up Period” shall commence as of June 21, 2022 and expire at the sooner of (i) 5:00 PM New York City Time on October 18, 2022 or (ii) the release of the Company’s earnings for the second quarter of the 2022 fiscal year.

SECTION 3. Amendment; Counterparts.

Except as expressly amended hereby, the provisions of the Lock-Up Agreement are and shall remain in full force and effect. This Amendment may be executed in two or more identical counterparts (including by electronic transmission), each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument, and shall become effective when one or more counterparts have been signed by each of the parties hereto and delivered (by electronic transmission or otherwise) to the other parties.

[Remainder of the page left intentionally blank.]


IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment as of the day and year first above written.

 

ALBERTSONS COMPANIES, INC.
By:  

/s/ Juliette Pryor

Name: Juliette Pryor
Title: EVP and General Counsel
CERBERUS:
CERBERUS ICEBERG LLC
By:   CERBERUS PARTNERS, L.P., its Management Member
By:   CERBERUS ASSOCIATES, L.L.C., its General Partner
By:  

/s/ Alexander D. Benjamin

Alexander D. Benjamin

Name

General Counsel

Title

[Signature Page to Amendment No. 1 to the Company Lock-Up Agreement]


CERBERUS ALBERTSONS INCENTIVE LLC
By:   CERBERUS CAPITAL MANAGEMENT, L.P., its Managing Member
By:  

/s/ Alexander D. Benjamin

Alexander D. Benjamin

Name

General Counsel

Title

[Signature Page to Amendment No. 1 to the Company Lock-Up Agreement]


KLAFF:
KLA A MARKETS, LLC
By:  

/s/ Hersch Klaff

Hersch Klaff

Name

President

Title
K-SATURN, LLC
By:  

/s/ Hersch Klaff

Hersch Klaff

Name

President

Title
A-S KLAFF EQUITY, LLC
By:  

/s/ Hersch Klaff

Hersch Klaff

Name

President

Title

[Signature Page to Amendment No. 1 to the Company Lock-Up Agreement]


KLAFF-W LLC
By:  

/s/ Hersch Klaff

Hersch Klaff

Name

President

Title

[Signature Page to Amendment No. 1 to the Company Lock-Up Agreement]


SCHOTTENSTEIN:
JUBILEE ABS HOLDING LLC
By:  

/s/ Ben Kraner

Ben Kraner

Name

Manager

Title

[Signature Page to Amendment No. 1 to the Company Lock-Up Agreement]


LUBERT-ADLER:
L-A V ABS, LLC
By:  

/s/ Dean Adler

Dean Adler

Name

CEO

Title
LUBERT-ADLER REAL ESTATE FUND V, L.P. (on behalf of itself, and as successor-by merger to LUBERT-ADLER REAL ESTATE PARALLEL FUND V, L.P.)
By:   Lubert-Adler Group V, L.P., its general partner
By:   Lubert-Adler Group V, LLC, its general partner
By:  

/s/ Dean Adler

Dean Adler

Name

CEO

Title

[Signature Page to Amendment No. 1 to the Company Lock-Up Agreement]


LUBERT-ADLER REAL ESTATE FUND VI, L.P.
By:   Lubert-Adler Group VI, L.P., its general partner
By:   Lubert-Adler Group VI, LLC, its general partner
By:  

/s/ Dean Adler

Dean Adler

Name

CEO

Title
LUBERT-ADLER REAL ESTATE FUND VI-A, L.P.
By:   Lubert-Adler Group VI, L.P., its general partner
By:   Lubert-Adler Group VI, LLC, its general partner
By:  

/s/ Dean Adler

Dean Adler

Name

CEO

Title

[Signature Page to Amendment No. 1 to the Company Lock-Up Agreement]


LUBERT-ADLER REAL ESTATE FUND VI-B, L.P.
By:   Lubert-Adler Group VI-B, L.P., its general partner
By:   Lubert-Adler Group VI-B, LLC, its general partner
By:  

/s/ Dean Adler

Dean Adler

Name

CEO

Title
L-A SATURN ACQUISITION, L.P.
By:   L-A Group Saturn, LLC, its general partner
By:  

/s/ Dean Adler

Dean Adler

Name

CEO

Title
L-A ASSET MANAGEMENT SERVICES, L.P.
By:   Lubert-Adler GP – West, LLC, its General Partner
By:  

/s/ Dean Adler

Dean Adler

Name

CEO

Title

[Signature Page to Amendment No. 1 to the Company Lock-Up Agreement]

Exhibit 10.2

Execution Version

LOCK-UP AGREEMENT

This Lock-Up Agreement (the “Agreement”) is entered into by and between Albertsons Companies, Inc. (the “Company”) and the undersigned investor (the “Investor”) as of September 9, 2022.

WHEREAS, the Company and the Investor have discussed entering into a lock-up agreement in form and substance similar to lock-up agreements entered into by and between the Company and other holders of Class A Common Stock of the Company (the “Sponsor Lock-Up Agreements”).

WHEREAS, the Company and Investor each desire to enter into a similar lock-up agreement as the Sponsor Lock-Up Agreements.

NOW, THEREFORE, in consideration of the mutual covenants, terms, and conditions set forth herein and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the Company and the Investor, intending to be legally bound, hereby agree as follows:

 

  1.

The Investor hereby agrees that, during the Lock-Up Period set forth below, the Investor will not offer, sell, transfer, contract to sell, pledge, grant any option to purchase, make any short sale or otherwise dispose of any shares of Series A Preferred Stock (“Preferred Stock”) or Class A Common Stock (together with the Preferred Stock, the “Shares”) of the Company, or any options or warrants to purchase any Shares, or any securities convertible into, exchangeable for or that represent the right to receive Shares, owned directly by the Investor (including holding as a custodian) or with respect to which the Investor has beneficial ownership within the rules and regulations of the Securities and Exchange Commission as of the date hereof (or acquired from the Company in exchange for or with respect to such securities) (collectively, the “Restricted Shares”), except as set forth in this Agreement.

 

  2.

The foregoing restriction is expressly agreed to preclude the Investor from engaging in any hedging or other transaction which is designed to or which reasonably could be expected to lead to or result in a sale or disposition of the Restricted Shares even if such Shares would be disposed of by someone other than the Investor. Such prohibited hedging or other transactions would include without limitation any short sale or any purchase, sale or grant of any right (including without limitation any put or call option or forward sale or similar contract) with respect to any of the Restricted Shares or with respect to any security that includes, relates to, or derives any significant part of its value from such Shares.

 

  3.

The “Lock-Up Period” shall commence as of the date hereof and expire at the sooner of (i) 5:00 PM New York City Time on October 18, 2022 or (ii) the release of the Company’s earnings for the second quarter of the 2022 fiscal year.


  4.

The Investor may transfer the Restricted Shares during the Lock-Up Period as follows: (i) as a bona fide gift or gifts; provided that the donee or donees thereof agree to be bound in writing by the restrictions set forth herein, (ii) to any trust for the direct or indirect benefit of the Investor or the immediate family of the Investor; provided that the trustee of the trust agrees to be bound in writing by the restrictions set forth herein, and provided further that any such transfer shall not involve a disposition for value, (iii) to any Affiliate of the Investor or any investment fund or other entity controlled or managed by the Investor or its Affiliates, (but in each case under this clause (iii), not including a portfolio company); provided that such person agrees to be bound in writing by the restrictions set forth herein, (iv) to a nominee or custodian of a person or entity to whom a disposition or transfer would be permissible under clauses (i) through (iii) above; provided that such person agrees to be bound in writing by the restrictions set forth herein, (v) pursuant to an order of a court or regulatory agency, (vi) pursuant to the pledge, hypothecation or other granting of a security interest in the Restricted Shares to one or more banks or financial institutions as bona fide collateral or security for any loan, advance or extension of credit and any transfer upon foreclosure upon such Shares or thereafter, (vii) pursuant to a bona fide third party tender offer, merger, consolidation or other similar transaction made to all holders of Shares that constitutes a change of control of the Company (provided that in the event that such tender offer, merger, consolidation or other similar transaction is not completed or Restricted Shares are not purchased thereunder, the Restricted Shares not purchased shall remain subject to the provisions of this Agreement), (viii) with the consent of a majority of the disinterested, independent directors of the board of directors of the Company (the “Independent Directors”), (ix) in accordance with a underwritten, marketed, registered offering pursuant to the Registration Rights Agreement (as defined below) or (x) to a bank or brokerage account in the name of the Investor, or an Affiliate of such Investor, provided that the Investor provides a written certification to the Company that the Investor or Affiliate thereof has sole control over the transactions in any such bank or brokerage account and acknowledgment that any Shares so transferred shall remain subject to this Agreement in accordance with the terms hereof. To facilitate the transfer contemplated by clause (x), at the written request of the Investor, the Company shall instruct, and use its reasonable best efforts to cause, the Company’s transfer agent to cause Shares of the Investor held in registered form on the books and records of the transfer agent to be transferred on an expedited basis via The Depository Trust Company Deposit or Withdrawal at Custodian system (DWAC) or the Direct Registration System (DRS) to the designated accounts of the Investor, as applicable, at one or more brokerage firms designated by the Investor. For purposes of this Agreement “immediate family” shall mean any relationship by blood, marriage or adoption, not more remote than first cousin. The Investor also agrees and consents to the continued status of the stop transfer instructions with the Company’s transfer agent and registrar against the transfer of the Restricted Shares except in compliance with the foregoing restrictions. The Investor now has, and, except as contemplated by clauses (i)-(x) above and for Restricted Shares otherwise transferred in accordance herewith, for the duration of this Agreement will have, good and valuable title to the Restricted Shares. For purposes of this Agreement, “Affiliate” shall have the meaning ascribed thereto in Rule 12b-2 promulgated under the Securities Exchange Act of 1934, as in effect on the date hereof.

 

2


  5.

In the event that any holder of Restricted Shares subject to a similar agreement other than the Investor is permitted by the Company (with the consent of a majority of the Independent Directors) to sell or otherwise transfer or dispose of any Restricted Shares for value (whether in one or multiple releases), then the same percentage of Restricted Shares held by the Investor (the “Pro-Rata Release”) shall be immediately and fully released on the same terms from any remaining lock-up restrictions set forth herein; provided that, except as set forth herein, such Pro-Rata Release shall not apply (i) in the event of any underwritten offering, whether or not such offering or sale is wholly or partially a secondary offering of Shares during the Lock-Up Period, if the Investor is offered the opportunity to participate in such underwritten offering on a basis consistent with its contractual rights under the Registration Rights Agreement among the Company, the Investor and certain other stockholders, dated June 9, 2020, as amended (the “Registration Rights Agreement”) or (ii) to any release of a lock-up entered into with the managing underwriter(s) of any underwritten offering. To the extent the Investor has the opportunity to participate in an underwritten offering pursuant to the Registration Rights Agreement during the Lock-Up Period, but does not elect to participate or does not elect to sell the maximum number of Shares that it would have been permitted to sell on a pro-rata basis in such underwritten offering, the Investor may then sell up to its pro-rata amount of Shares that could have been sold in such underwritten offering in a non-underwritten registered shelf-takedown (provided that the Company is not required to participate in any due diligence or comfort letter process in connection with such takedown) or an unregistered sale pursuant to Rule 144 or another exemption from the registration requirements under the Securities Act of 1933, as amended (unless the Investor is otherwise restricted from such sales, such as pursuant to a lock-up delivered to an underwriter or required pursuant to the terms of the Registration Rights Agreement).

 

  6.

Upon execution, this Agreement and the Registration Rights Agreement shall contain the entire understanding of the parties with respect to the matters covered herein.

[Remainder of the page left intentionally blank.]

 

3


IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the date first written above.

 

ALBERTSONS COMPANIES, INC.:
By:  

/s/ Juliette Pryor

Name:   Juliette Pryor
Title:   EVP, General Counsel and Secretary

[Signature Page to Company Lock-Up Agreement]


HPS:
ASSURED OFFSHORE, L.P.
By:   HPS Mezzanine Management III, LLC,
  its investment manager
By:   HPS Investment Partners, LLC,
  its sole member
By:  

/s/ Shant Babikian

  Name:   Shant Babikian
  Title:   Managing Director
MEZZANINE PARTNERS III, L.P.
By:   HPS Mezzanine Management III, LLC,
  its investment manager
By:   HPS Investment Partners, LLC,
  its sole member
By:  

/s/ Shant Babikian

  Name:   Shant Babikian
  Title:   Managing Director
AP MEZZANINE PARTNERS III, L.P.
By:   HPS Mezzanine Management III, LLC,
  its investment manager
By:   HPS Investment Partners, LLC,
  its sole member
By:  

/s/ Shant Babikian

  Name:   Shant Babikian
  Title:   Managing Director

[Signature Page to Company Lock-Up Agreement]


HPS FUND OFFSHORE SUBSIDIARY XI, L.P.
By:   HPS Mezzanine Management III, LLC,
  its investment manager
By:   HPS Investment Partners, LLC,
  its sole member
By:  

/s/ Shant Babikian

  Name:   Shant Babikian
  Title:   Managing Director
MP 2019 OFFSHORE AB SUBSIDIARY, L.P.
By:   HPS Mezzanine Management 2019, LLC,
  its investment manager
By:   HPS Investment Partners LLC,
  its sole member
By:  

/s/ Shant Babikian

  Name:   Shant Babikian
  Title:   Managing Director
MP 2019 ONSHORE MEZZANINE MASTER, L.P.
By:   HPS Mezzanine Management 2019, LLC,
  its investment manager
By:   HPS Investment Partners, LLC,
  its sole member
By:  

/s/ Shant Babikian

  Name:   Shant Babikian
  Title:   Managing Director

[Signature Page to Company Lock-Up Agreement]


MP 2019 AP MEZZANINE MASTER, L.P.
By:   HPS Mezzanine Management 2019, LLC,
  its investment manager
By:   HPS Investment Partners, LLC,
  its sole member
By:  

/s/ Shant Babikian

  Name:   Shant Babikian
  Title:   Managing Director

[Signature Page to Company Lock-Up Agreement]