BJ’s Wholesale to repay second-lien term loan with IPO proceeds

By Wendy Van Sickle

Columbus, Ohio, May 17 – BJ’s Wholesale Club Inc. plans to repay debt under its second-lien term loan with proceeds of an initial public offering of stock, according to a registration statement filed with the Securities and Exchange Commission.

The company will also use cash and borrowings under its asset-based lending facility to repay second-lien term debt.

Due Feb. 3, 2025, the second-lien term loan was drawn on Feb. 3, 2017 and used, along with borrowings under BJ’s Wholesale’s first-lien facility, to finance a $735.5 million dividend payment to stockholders and $72.9 million in payments related to outstanding stock options and retention bonus arrangements.

Any proceeds remaining from the IPO after the full repayment of the second-lien term loan would be used for general corporate purposes.

The operator of warehouse clubs is based in Westborough, Mass.

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