Savers Value Village kicks off $500 million secured notes offering; initial talk 10% area

By Paul A. Harris

Portland, Ore., Jan. 23 – Savers Value Village, Inc. plans to sell a $500 million offering of senior secured notes due April 2027 (expected ratings B2/B), according to market sources.

Initial guidance has the notes pricing to yield in the 10% area, according to a sellside source, who added that $400 million of the deal is heard to be done in reverse inquiry.

The offering kicks off on an investor conference call set to begin at 1 p.m. ET on Monday. A virtual roadshow Tuesday through Thursday is set to follow.

Jefferies LLC, J.P. Morgan Securities LLC and KKR Capital Markets LLC are the bookrunners.

The Rule 144A and Regulation S for life notes have a tenor of about 4.5 years and come with two years of call protection.

The issuer will be Evergreen AcqCo 1 LP, and the co-issuer will be TVI, Inc., both subsidiaries of Savers Value Village.

The Bellevue, Wash.-based thrift store operator plans to use the proceeds to repay a portion of its term loan and fund a distribution to its shareholders.

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