| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for Staples, Inc. > News item |
Staples lifts term loan to $2.7 billion, decreases bridge loan size
By Sara Rosenberg
New York, Aug. 9 – Staples Inc. upsized its seven-year first-lien term loan to $2.7 billion from $2.4 billion and downsized its unsecured bridge loan to $1.3 billion from $1.6 billion, according to a market source.
Price talk on the term loan is still Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99.5.
The term loan has 101 soft call protection for six months.
UBS Investment Bank, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, Jefferies LLC, Fifth Third Bank, Goldman Sachs Bank USA, Citigroup Global Markets Inc., KKR Capital Markets and Natixis are the bookrunners on the deal.
Commitments are due at noon ET on Friday, accelerated from Monday, the source said.
Proceeds will be used to help fund the buyout of the company by Sycamore Partners for $10.25 in cash per share of common stock. The transaction is valued at about $6.9 billion.
As part of the financing package, the company is also getting a $1.2 billion ABL facility for which Wells Fargo is the left lead.
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.
© 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.