Hudson’s Bay readies launch of new term loan B for Tuesday

By Sara Rosenberg

New York, Aug. 3 – Hudson’s Bay Co. is scheduled to hold a bank meeting on Tuesday to launch a new term loan B, according to a market source.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., RBC Capital Markets and Scotiabank are the leads on the term loan B.

Recently, the company said that it received a commitment for a roughly $3.25 billion term loan B to help fund its acquisition of Galeria Holding (Kaufhof) for €2.42 billion and to refinance an existing $650 million senior term loan but that it does not expect to utilize the large majority of the term loan B commitment.

The company went on to say that it 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 recently completed U.S. real estate joint venture between Hudson’s Bay and Simon Property Group.

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.

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