Whole Foods Debt Offering Doubles to $1B

Whole Foods Markets is trying to raise $1B in a debt offering—twice the amount it initially sought. The Austin-based grocery retailer said it intends to use the additional proceeds for general corporate purposes, including a possible $1B stock repurchase.

Citing challenges related to increased competition in the natural and organic space—Whole Foods has lost around $7B in market value since January—Standard & Poor’s assigned the lower rung BBB issue-level rating Monday, while also assigning a negative outlook on Whole Food’s corporate credit outlook, reports Supermarket News.

The S&P said that while Whole Foods leads the "natural sub segment of the highly fragmented food retail industry," its overall share of the food retail industry is still "relatively small and under pressure."

Adding that "could be downgraded if pricing investments fail to boost sales," Whole Foods also acknowledged it expects to be more price-competitive as it faces more competition. [SMN]

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Democrats Win Congress As America's Data Center Backlash Hits The Ballot Box

U.S. Hotel RevPAR Surges 7% In Q3, But Expect Easing From Here

Stock Sell-Off, Bond Market Jitters Signal Financing Trouble For AI Data Centers

Wereldhave Sells €63M Shopping Center To French Investor

Starwood Launches Residential Land JV Targeting $1B In Annual Originations

RealPage Antitrust Case Ends With Nearly $360M In Settlements For Renters

ZOM Living Entity Files For Bankruptcy To Fund Fight To Overturn $323M Judgment

How Colliers Engineering Helped A Struggling Dam Move To The Head Of The Class

Real Estate's Bottom Rung Is Getting Harder To Reach — And Now It Wants AI Skills

Banks Are Manhattan's Latest Hot Retail Tenant

OpenAI Plans Data Center Rebrand To Make Projects Palatable To Voters

The Geo Group To Reopen 2,329-Bed Immigration Facility In Texas