Free Writing Prospectus

Filed Pursuant to Rule 433

Registration Statement Number 333-192842

 

The Kroger Co.

 

 

Pricing Term Sheet
Dated September 26, 2016

 

Issuer:

The Kroger Co.

Security Type:

Senior Notes

Trade Date:

September 26, 2016

Settlement Date:

October 3, 2016 (T+5)

Denominations:

$2,000 x $1,000

Ratings (Moody’s / S&P / Fitch)*:

Baa1 / BBB / BBB

 

1.500% Senior Notes Due 2019

 

Principal Amount:

$500,000,000

Maturity Date:

September 30, 2019

Coupon:

1.500%

Benchmark Treasury:

UST 0.875% due September 15, 2019

Benchmark Treasury Price / Yield:

100-00 ¾ / 0.867%

Spread to Benchmark Treasury:

T + 65 basis points

Yield to Maturity:

1.517%

Price to Public:

99.951%

Interest Payment Dates:

March 30 and September 30, commencing on March 30, 2017

Make-Whole Call:

Treasury Rate plus 10 basis points

CUSIP/ISIN:

501044 DD0 / US501044DD07

 

2.650% Senior Notes Due 2026

 

Principal Amount:

$750,000,000

Maturity Date:

October 15, 2026

Coupon:

2.650%

Benchmark Treasury:

UST 1.500% due August 15, 2026

Benchmark Treasury Price / Yield:

99-06+ / 1.587%

Spread to Benchmark Treasury:

T + 110 basis points

Yield to Maturity:

2.687%

Price to Public:

99.676%

Interest Payment Dates:

April 15 and October 15, commencing on April 15, 2017

Make-Whole Call:

Treasury Rate plus 20 basis points (prior to

 


 

 

Par Call:

July 15, 2026)
On or after July 15, 2026 (three months prior to maturity)

CUSIP/ISIN:

501044 DE8 / US501044DE89

 

3.875% Senior Notes Due 2046

 

Principal Amount:

$500,000,000

Maturity Date:

October 15, 2046

Coupon:

3.875%

Benchmark Treasury:

UST 2.500% due May 15, 2046

Benchmark Treasury Price / Yield:

103-22 / 2.327%

Spread to Benchmark Treasury:

T + 155 basis points

Yield to Maturity:

3.877%

Price to Public:

99.963%

Interest Payment Dates:

April 15 and October 15, commencing on April 15, 2017

Make-Whole Call:

Treasury Rate plus 25 basis points (prior to April 15, 2046)

Par Call:

On or after April 15, 2046 (six months prior to maturity)

CUSIP/ISIN:

501044 DF5 / US501044DF54

 

 

Joint Book-Running Managers:

 

 

 

1.500% Senior Notes Due 2019

 

Citigroup Global Markets Inc.

 

Goldman, Sachs & Co.

 

Wells Fargo Securities, LLC

 

BNY Mellon Capital Markets, LLC

 

Fifth Third Securities, Inc.

 

Santander Investment Securities Inc.

 

 

2.650% Senior Notes Due 2026 and 3.875% Senior Notes Due 2046

 

Citigroup Global Markets Inc.

 

Goldman, Sachs & Co.

 

Wells Fargo Securities, LLC

 

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

 

Fifth Third Securities, Inc.

 

PNC Capital Markets LLC

 

 

Co-Managers:

 

 

 

1.500% Senior Notes Due 2019

 

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

 


 

 

PNC Capital Markets LLC

 

Merrill Lynch, Pierce, Fenner & Smith
Incorporated

 

MUFG Securities Americas Inc.

 

Mizuho Securities USA Inc.

 

RBC Capital Markets, LLC

 

U.S. Bancorp Investments, Inc.

 

The Williams Capital Group, L.P.

 

 

2.650% Senior Notes Due 2026 and 3.875% Senior Notes Due 2046

 

BNY Mellon Capital Markets, LLC

 

Santander Investment Securities Inc.

 

Merrill Lynch, Pierce, Fenner & Smith
Incorporated

 

MUFG Securities Americas Inc.

 

Mizuho Securities USA Inc.

 

RBC Capital Markets, LLC

 

U.S. Bancorp Investments, Inc.

 

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 Citigroup Global Markets Inc. toll-free at 1-800-831-9146, Goldman, Sachs & Co. toll-free at 1-866-471-2526, or Wells Fargo Securities, LLC toll-free at 1-800-645-3751.

 

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