Jones Group plans $650 million credit facility, $525 million notes

By Sara Rosenberg

New York, Jan. 21 - The Jones Group Inc. plans on getting a $650 million senior secured credit facility and issuing $525 million of senior unsecured notes to help fund its purchase by Sycamore Partners, according to a PREM14A filed with the Securities and Exchange Commission on Tuesday.

The facility consists of a $250 million asset-based revolver and a $400 million term loan.

Backing the notes is a commitment for a $525 million senior unsecured bridge loan.

Wells Fargo Securities LLC and Bank of America Merrill Lynch are the lead banks on the revolver, and Morgan Stanley Senior Funding Inc., Jefferies Finance LLC and MCS Corporate Lending LLC are leading the term loan and notes.

Other funds for the transaction will come from equity.

Under the agreement, Jones is being bought for $15.00 per share in cash in a transaction valued at about $2.2 billion, including net debt.

Closing is expected in the second quarter, subject to shareholder and regulatory approvals and other customary conditions.

Jones is a New York-based designer, marketer and wholesaler of apparel, footwear, jeanswear, jewelry and handbags.

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