Collective Brands marketing $725 million term loan B

By Sara Rosenberg

New York, March 13 - Collective Brands Inc. is trying to syndicate its $725 million seven-year term loan B (B1/BB-) that funded this past summer, market sources said.

The term loan B is priced at Libor plus 275 basis points.

According to one source, the original issue discount on the term loan may be guided in the area of 88 to 90.

Citigroup is the left lead bank on the deal.

The term loan was used to help fund Payless ShoeSource Inc.'s acquisition of the Stride Rite Corp. for $20.50 per share, totaling about $800 million, plus the assumption of Stride Rite debt.

Concurrent with the closing of the acquisition, Payless renamed the Topeka, Kan.-based combined footwear, accessories and lifestyle brand company Collective Brands Inc., which, as a holding company, operates three standalone business units: Payless, Stride Rite and Collective Licensing International.

© 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.