| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers H > Headlines for Hudson's Bay Co. > News item |
Hudson’s Bay gets term B commitment but plans alternative financing
By Sara Rosenberg
New York, June 15 – Hudson’s Bay Co. has received a commitment for a roughly $3.25 billion term loan B to help fund its acquisition of Galeria Holding (Kaufhof) and to refinance an existing $650 million senior term loan but does not expect to utilize the large majority of the term loan B commitment, the company said in a news release.
Instead, the company expects to use proceeds from the sale of at least 40 of Kaufhof’s owned or partially owned properties to largely fund the cash purchase of the Kaufhof acquisition and expected transaction costs.
The properties would be sold for at least €2.4 billion to the previously announced U.S. real estate joint venture between Hudson’s Bay and Simon Property Group.
Funds for the joint venture’s purchase of the Kaufhof properties are expected to come from a real estate term loan, additional debt secured by the Saks and Lord & Taylor properties that the joint venture will own, $179 million from Simon as per a prior equity commitment, a new investment from Hudson’s Bay using any excess proceeds from the sale of the properties and up to $600 million in equity from third-parties or additional equity from Hudson’s Bay, in which case Hudson’s Bay would draw on its term loan B commitment.
Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., RBC Capital Markets and Scotiabank are the leads on the term loan B.
Under the agreement, Kaufhof is being bought for €2.42 billion.
The acquisition is expected to close by the end of the third fiscal quarter, subject to customary conditions.
Hudson’s Bay is an Ontario-based operator of department stores. Kaufhof is an operator of department stores in Germany and Belgium.
© 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.