Hudson’s Bay firms roughly $1.09 billion term B at Libor plus 375 bps

By Sara Rosenberg

New York, Aug. 13 – Hudson’s Bay Co. set pricing on its $1,085,000,000 seven-year term loan B (B1/BB) at Libor plus 375 basis points, the wide end of the Libor plus 350 bps to 375 bps talk, according to a market source.

Also, the company added a step-down to the term loan to Libor plus 350 bps at less than 2 times leverage, the source said.

The term loan still has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Thursday.

Allocations are targeted for Friday, the source added.

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

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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