Chase provides $60 million for L.A. buyout firm.

Chase Manhattan Bank said it provided $60 million of financing for the purchase of a Phoenix-based supermarket chain by Yucaipa Cos.

Yucaipa, a Los Angeles-based buyout firm, bought Smitty's Super Valu Inc. for $137.5 million in cash and the assumption and repayment of debt. The deal closed late last week.

Supermarkets Are Targeted

Chase said the bank financing consisted of a $40 million term loan, and a $20 million revolving credit, both maturing in five years.

Yucaipa also obtained $65 million of senior subordinated notes and senior discount debentures through First Boston.

Yucaipa has completed 10 supermarket acquisitions over the last seven years. The firm's biggest transaction was the buyout of the Food 4 Less supermarket chain, which has annual sales of about $2.6 billion.

Smitty's reported sales of about $600 million for the fiscal year ended August 1993.

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