Staples starts roadshow for $2.13 billion two-part notes offer via left lead Goldman Sachs

By Paul A. Harris

Portland, Ore., April 2 – Staples, Inc. started a roadshow on Tuesday in New York for a $2,125,000,000 two-part offering of high-yield notes, according to market sources.

The Rule 144A and Regulation S for life deal features $750 million of seven-year senior secured notes (B1/B+) with initial guidance in the mid-to-high 7% area.

It also features $1,375,000,000 of eight-year senior unsecured notes due 2027 (B3) whispered in the high 9% to low 10% area.

The roadshow travels to Boston on Wednesday and to Los Angeles on Thursday, and the deal is set to price thereafter.

Goldman Sachs & Co. is the left lead. UBS Investment Bank, BofA Merrill Lynch, Barclays, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Jefferies LLC, KKR Capital Markets, Morgan Stanley & Co., RBC Capital Markets LLC and Wells Fargo Securities LLC are also leads.

The notes in both tranches become callable after three years at par plus 50% of the respective coupons, and feature 40% equity clawbacks at par plus the full coupons.

The Framingham, Mass.-based business supplies distributor plans to use the proceeds, together with borrowings under its term loan and ABL facility, to make a distribution to shareholders, refinance existing term loan debt and redeem existing notes.

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