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Staples adds more lead arrangers to $5.2 billion debt commitment
By Sara Rosenberg
New York, July 21 – Staples Inc. added some more arrangers to its debt financing, including Citigroup Global Markets Inc., Goldman Sachs Bank USA, KKR Capital Markets and Natixis, according to a market source.
Those banks join UBS Investment Bank, Wells Fargo Securities LLC, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Fifth Third Bank, Jefferies LLC and RBC Capital Markets on the debt.
UBS is the left lead on the company’s proposed term loan, Wells Fargo is the left lead on the ABL facility and Bank of America is the left lead on the bridge loan.
As previously reported, Staples has received a commitment for $3.6 billion of credit facilities and a $1.6 billion unsecured bridge loan to help fund its acquisition by Sycamore Partners.
The facilities consist of a $2.4 billion term loan and a $1.2 billion ABL facility.
Under the agreement, Staples is being bought for $10.25 per share in cash per share of common stock. The transaction is valued at about $6.9 billion.
With the acquisition, there will be an internal reorganization under which the U.S. Retail, Canadian Retail, and North American Delivery business will be separated into stand-alone entities.
The debt financing is for the North American Delivery business, which will have pro forma leverage of around 4 times.
Closing is expected no later than December, subject to customary conditions, including the receipt of regulatory and stockholder approval. The transaction is not subject to a financing condition.
Staples is a Framingham, Mass.-based retailer of office supplies.
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