J. Crew to redeem some or all 9¾%, all 13 1/8% notes as part of IPO

New York, Aug. 17 - J. Crew Group, Inc. said it plans to redeem some or all of J. Crew Operating Corp.'s $275 million of 9¾% senior subordinated notes due 2014 and all $21.7 million principal amount of its 13 1/8% senior discount debentures due 2008 as part of a planned initial public offering.

The New York-based retailer of clothes and accessories also plans to redeem all its $270.99 million of outstanding 14½% cumulative preferred stock and 14½% cumulative redeemable preferred stock and to convert J. Crew Operating's $22.33 million of 5% notes due 2008 owned by TPG-MD Investment, LLC, a company controlled by Texas Pacific Group and the J. Crew's chairman and chief executive officer Millard Drexler, into common stock at a price of $6.82 per share.

Funding for the redemptions will come from the planned IPO of up to $200 million of common stock, the sale of $73.5 million of common stock to Texas Pacific and a new term loan, according to an S-1 filing with the Securities and Exchange Commission.

Goldman, Sachs & Co. is bookrunner of the IPO with Bear Stearns & Co. Inc. as joint lead manager.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.