Kroger prices $1.5B senior notes across two tranches
What's the deal? Kroger priced $1.5 billion in senior unsecured notes across two tranches on September 28, 2026, according to a filing with the Securities and Exchange Commission. The offering splits into $650 million of 5.800% notes maturing in 2032 and $850 million of 6.200% notes maturing in 2036. Settlement is set for October 5, 2026.
The terms: The 2032 notes priced at 99.967% of principal, yielding 5.809%, at a spread of Treasury plus 75 basis points. The 2036 notes priced at 99.756%, yielding 6.232%, at Treasury plus 100 basis points. Both tranches carry a Baa1 rating from Moody's and BBB from S&PDealroom has a profile for this one. Try Dealroom →.
Who's involved? Citigroup, Mizuho SecuritiesDealroom has a profile for this one. Try Dealroom →, and Wells Fargo SecuritiesDealroom has a profile for this one. Try Dealroom → served as joint book-running managers for both tranches. BNY Mellon Capital Markets, Fifth Third Securities, and RBC Capital MarketsDealroom has a profile for this one. Try Dealroom → acted as co-managers.
Why it matters: Kroger, one of the largest US grocery and food retailers, tapped the debt markets for a sum that ranks in the top 10% of post-IPO debt raises by US food companies, based on 252 comparable deals.
The signal: Established retailers are locking in fixed-rate debt with long maturities, extending obligations into 2032 and 2036. The pricing — coupons near 6% and tight spreads over Treasuries — signals steady investor demand for investment-grade corporate paper.
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