Hudson’s Bay launches $1.09 billion term loan B to investors

By Sara Rosenberg

New York, Aug. 4 – Hudson’s Bay Co. launched at its bank meeting on Tuesday a new $1,085,000,000 seven-year 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 debt.

Price talk on the term loan B is Libor plus 350 basis points to 375 bps with a 1% Libor floor and an original issue discount of 99.5, the source said.

The term loan has 101 soft call protection for six months.

Commitments are due on Aug. 13, the source added.

Proceeds will be used to help fund the acquisition of Galeria Holding (Kaufhof) for €2.42 billion.

Closing is expected 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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