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Prospect News home > News index > List of issuers B > Headlines for Belk Inc. > News item |
Belk cuts term B to $1.5 billion, ups ABL revolver to $900 million
By Sara Rosenberg
New York, Nov. 10 – Belk Inc. downsized its seven-year first-lien covenant-light term loan B to $1.5 billion from $1.6 billion and upsized its ABL revolver to $900 million from $800 million, according to a market source.
The company will draw an additional $100 million under the revolver to make up for the lost term loan funds, the source said.
Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Jefferies Finance LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Nomura Securities International Inc., RBC Capital Markets LLC and MCS Capital Markets are the joint lead arrangers and bookrunners on the deal.
Talk on the term loan is Libor plus 450 basis points to 475 bps with a 1% Libor floor, an original issue discount of 98 to 98.5 and 101 soft call protection for one year.
Proceeds will be used to help fund the buyout of the company by Sycamore Partners for $68.00 per share in cash. The transaction has an estimated enterprise value of about $3 billion.
Closing is expected in the fourth quarter, subject to customary conditions, including the receipt of regulatory and stockholder approval.
Belk is a Charlotte, N.C.-based department store company.
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