Exhibit 1.1.1
Pricing Agreement
XXXXXXX, XXXXX & CO.
RABO SECURITIES USA, INC.
BARCLAYS CAPITAL INC.
BNP PARIBAS SECURITIES CORP.
SCOTIA CAPITAL (USA) INC.
THE XXXXXXXX CAPITAL GROUP, L.P.
As Representatives of the several
Underwriters named in Schedule II hereto,
December 9, 2004
Dear Sirs:
The Kroger Co., an Ohio corporation (the "Company"), and the
Guarantors on Schedule I and on the signature pages hereto propose, subject to
the terms and conditions stated herein and in the Underwriting Agreement, dated
December 9, 2004 (the "Underwriting Agreement"), to issue and sell to the
Underwriters named in Schedule II hereto (the "Underwriters") the Securities
(the "Designated Securities") and related Guarantees specified in Schedule III
hereto. Each of the provisions of the Underwriting Agreement is incorporated
herein by reference in its entirety, and shall be deemed to be a part of this
Agreement to the same extent as if such provisions had been set forth in full
herein; and each of the representations and warranties set forth therein shall
be deemed to have been made at and as of the date of this Pricing Agreement,
except that each representation and warranty which refers to the Prospectus in
Section 2 of the Underwriting Agreement shall be deemed to be a representation
or warranty as of the date of the Underwriting Agreement in relation to the
Prospectus (as therein defined), and also a representation and warranty as of
the date of this Pricing Agreement in relation to the Prospectus as amended or
supplemented relating to the Designated Securities and related Guarantees. Each
reference to the Representatives herein and in the provisions of the
Underwriting Agreement so incorporated by reference shall be deemed to refer to
you. Unless otherwise defined herein, terms defined in the Underwriting
Agreement are used herein as therein defined. The Representatives designated to
act on behalf of each of the Underwriters of the Designated Securities and
related Guarantees pursuant to Section 12 of the Underwriting Agreement and the
address of the Representatives referred to in such Section 12 are set forth at
the end of Schedule III hereto.
An amendment to the Registration Statement, or a supplement to the
Prospectus, as the case may be, relating to the Designated Securities and
related Guarantees, in the form heretofore delivered to you is now proposed to
be filed with the Commission.
Subject to the terms and conditions set forth herein and in the
Underwriting Agreement incorporated herein by reference, the Company agrees to
issue and sell to each of the Underwriters, and each of the Underwriters agrees,
severally and not jointly, to purchase from the Company, at the time and place
and at the purchase price to the Underwriters, and under other terms and
conditions set forth in Schedule III hereto, the principal amount of Designated
Securities set forth opposite the name of such Underwriter in Schedule II
hereto.
If the foregoing is in accordance with your understanding, please
sign and return to us ten counterparts hereof, and upon acceptance hereof by
you, on behalf of each of the Underwriters, this letter and such acceptance
hereof, including the provisions of the Underwriting Agreement incorporated
herein by reference, shall constitute a binding agreement between each of the
Underwriters, the Company and each of the Guarantors. It is understood that your
acceptance of this letter on behalf of each of the Underwriters is or will be
pursuant to the authority set forth in a form of Agreement among Underwriters,
the form of which shall be submitted to the Company for examination upon
request, but without warranty on the part of the Representatives as to the
authority of the signers thereof.
Very Truly Yours,
THE KROGER CO.
Each of the Guarantors Listed on Schedule I
hereto, as Guarantor of the Designated Securities
By: /s/ Xxxx X. Xxxxxxx
--------------------------------------------
Name: Xxxx X. Xxxxxxx
Title: Senior Vice President/President/
Vice President
QUEEN CITY ASSURANCE, INC.
as Guarantor of the Designated Securities
RJD ASSURANCE, INC.
as Guarantor of the Designated Securities
VINE COURT ASSURANCE INCORPORATED,
as Guarantor of the Designated Securities
By: /s/ Xxxxx X. Xxxx
--------------------------------------------
Name: Xxxxx X. Xxxx
Title: Senior Vice President/Vice President
RICHIE'S INC.
as Guarantor of the Designated Securities
ROCKET NEWCO, INC.
as Guarantor of the Designated Securities
HENPIL, INC.
as Guarantor of the Designated Securities
By: /s/ Xxxx X. Xxxxxx
--------------------------------------------
Name: Xxxx X. Xxxxxx
Title: President/Vice President
Xxxxxxx, Xxxxx & Co.
Rabo Securities USA, Inc.
Barclays Capital Inc.
BNP Paribas Securities Corp.
Scotia Capital (USA) Inc.
The Xxxxxxxx Capital Group, L.P.
By: /s/ Xxxxxxx, Xxxxx & Co.
---------------------------------
(Xxxxxxx, Sachs & Co.)
On behalf of each of the Underwriters
SCHEDULE I
Name of Guarantor State of Organization
----------------- ---------------------
Alpha Beta Company California
Bay Area Warehouse Stores, Inc. California
Xxxx Markets, Inc. California
Cala Co. Delaware
Cala Foods, Inc. California
CB&S Advertising Agency, Inc. Oregon
Xxxxxxxx Stores, Inc. California
Xxxxxx Companies, Inc. Kansas
Xxxxxx Real Estate Co., Inc. Kansas
Distribution Trucking Company Oregon
F4L L.P. Ohio
FM, Inc. Utah
FMJ, Inc. Delaware
Food 4 Less GM, Inc. California
Food 4 Less Holdings, Inc. Delaware
Food 4 Less Merchandising, Inc. California
Food 4 Less of California, Inc. California
Food 4 Less of Southern California, Inc. Delaware
Xxxx Xxxxx, Inc. Delaware
Xxxx Xxxxx Jewelers, Inc. California
Xxxx Xxxxx Stores, Inc. Ohio
Xxxxxx Markets, Inc. California
Xxxxxx Realty, Inc. California
Inter-American Foods, Inc. Ohio
Junior Food Stores of West Florida, Inc. Florida
J.V. Distributing, Inc. Michigan
KRGP Inc. Ohio
KRLP Inc. Ohio
The Kroger Co. of Michigan Michigan
Kroger Dedicated Logistics Co. Ohio
Kroger Group Cooperative, Inc. Ohio
Kroger Limited Partnership I Ohio
Kroger Limited Partnership II Ohio
Kroger Texas L.P. Ohio
Kwik Shop, Inc. Kansas
Mini Mart, Inc. Wyoming
Peyton's-Southeastern, Inc. Tennessee
Quik Stop Markets, Inc. California
Ralphs Grocery Company Ohio
Second Story, Inc. Washington
Xxxxx'x Beverage of Wyoming, Inc. Wyoming
Xxxxx'x Food & Drug Centers, Inc. Ohio
THGP Co., Inc. Pennsylvania
THLP Co., Inc. Pennsylvania
Topvalco, Inc. Ohio
Turkey Xxxx X.X. Pennsylvania
SCHEDULE II
UNDERWRITER PRINCIPAL AMOUNT OF 4.95% SENIOR
NOTES DUE 2015 TO BE PURCHASED
Xxxxxxx, Sachs & Co. $225,000,000
Rabo Securities USA, Inc. $ 22,500,000
Barclays Capital Inc. $ 15,000,000
BNP Paribas Securities Corp. $ 15,000,000
Scotia Capital (USA) Inc. $ 15,000,000
The Xxxxxxxx Capital Group, L.P. $ 7,500,000
------------
Total $300,000,000
SCHEDULE III
TITLE OF DESIGNATED SECURITIES:
4.95% Senior Notes due 0000
XXXXXXXXX PRINCIPAL AMOUNT:
$300,000,000 of 4.95% Senior Notes due 2015
PRICE TO PUBLIC:
99.721% of the principal amount of the 4.95% Senior Notes due 2015, plus
accrued interest from December 20, 2004.
PURCHASE PRICE BY UNDERWRITERS:
99.071% of the principal amount of the 4.95% Senior Notes due 2015, plus
accrued interest from December 20, 2004.
SPECIFIED FUNDS FOR PAYMENT OF PURCHASE PRICE:
Immediately available funds
INDENTURE:
Indenture dated as of June 25, 1999, between the Company, the Guarantors
and Firstar Bank, National Association, as Trustee, as supplemented by the
First Supplemental Indenture, dated June 25, 1999, the Second Supplemental
Indenture, dated June 25, 1999, the Third Supplemental Indenture, dated
June 25, 1999, the Fourth Supplemental Indenture, dated September 22,
1999, the Fifth Supplemental Indenture, dated September 22, 1999, the
Sixth Supplemental Indenture, dated September 22, 1999, the Seventh
Supplemental Indenture, dated February 11, 2000, the Eighth Supplemental
Indenture, dated February 11, 2000, the Ninth Supplemental Indenture,
dated August 21, 2000, the Tenth Supplemental Indenture, dated May 11,
2001, the Eleventh Supplemental Indenture, dated May 11, 2001, the Twelfth
Supplemental Indenture, dated August 16, 2001, the Thirteenth Supplemental
Indenture, dated April 3, 2002, the Fourteenth Supplemental Indenture
dated June 17, 2002, the Fifteenth Supplemental Indenture dated January
28, 2003 and the Sixteenth Supplemental Indenture dated December 20, 2004.
MATURITY:
The 4.95% Senior Notes due 2015 will mature on January 15, 2015.
INTEREST RATES:
The 4.95% Senior Notes due 2015 will bear interest from December 20, 2004
at 4.95%.
INTEREST PAYMENT DATES:
Interest on the 4.95% Senior Notes due 2015 is payable semiannually on
January 15 and July 15 of each year commencing on July 15, 2005.
REDEMPTION PROVISIONS:
As described in the Prospectus Supplement dated December 9, 2004.
SINKING FUND PROVISION:
No sinking fund provisions.
DEFEASANCE PROVISIONS:
As described in the Prospectus Supplement dated December 9, 2004.
GUARANTEES:
Guaranteed by the Guarantors set forth on the signature pages and Schedule
I to the Pricing Agreement.
TIME OF DELIVERY:
December 20, 2004.
CLOSING LOCATION:
Offices of Fried, Frank, Harris, Xxxxxxx & Xxxxxxxx LLP
Xxx Xxx Xxxx Xxxxx,
Xxx Xxxx, Xxx Xxxx 00000
NAME AND ADDRESS OF REPRESENTATIVES:
Xxxxxxx, Sachs & Co.
00 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
