Davis Polk advised an ad hoc group of term lenders in connection with the comprehensive recapitalization of Moran Foods, LLC (d/b/a Save-A-Lot) that significantly deleveraged the company’s balance sheet. With the unanimous support of all constituents, Save-A-Lot’s recapitalization was completed on April 1, 2020, consummating debt-for-equity and debt-for-debt exchanges that eliminated approximately $500 million in debt. The transactions also provided a significant infusion of new capital to support Save-A-Lot’s operations and the acceleration of its business transformation plan.
Founded in 1977, St. Louis-based Save-A-Lot is one of the nation’s largest discount grocery chains, operating more than 1,100 corporate and licensed stores across 33 states and 14 wholesale distribution centers.
The Davis Polk restructuring team included partner Brian M. Resnick and associate Adam L. Shpeen. Davis Polk’s finance team included partners Hilary Dengel and J.W. Perry, and counsel Andrei Takhteyev. Partner Brian D. Hirsch provided real estate advice. Partner Lucy W. Farr and associates Tracy L. Matlock and Bradford Sherman provided tax advice. The corporate team included partner Michael Davis and the executive compensation team included partner Edmond T. FitzGerald. All members of the Davis Polk team are based in the New York office.