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Staples LBO Financing to Include $2.4B Leveraged Loan, $1.6B Bridge Debt

UBS, Bank of America Merrill Lynch, Deutsche Bank, Credit Suisse, RBC Capital Markets, Jefferies, Wells Fargo, and Fifth Third Bank are providing the debt financing for the proposed take-private acquisition of Staples, Inc. by Sycamore Partners.

At close there will be an internal reorganization whereby the U.S. retail, Canadian retail, and the North American delivery business will be separated into standalone entities. The arranger group has committed $5.2 billion for the financing of the North American delivery segment, which will leverage the pro forma business approximately 4x, sources note.

Financing will comprise a $2.4 billion B term loan, a $1.6 billion unsecured bridge, and a $1.2 billion ABL facility, according to sources.

UBS is lead arranger on the term loan, Bank of America is lead arranger on the unsecured bridge, and Wells Fargo is lead arranger on the ABL facility.

The transaction is expected to close in 2017.

Staples (Nasdaq: SPLS) last week disclosed that Sycamore would acquire the company in a $6.9 billion transaction. Under the terms of the agreement, Staples’ stockholders will receive $10.25 per share. — Jon Hemingway/Richard Kellerhals

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This story is taken from analysis which first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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