Linens 'n Things to get LBO debt financing from Bear, UBS

By Sara Rosenberg

New York, Nov. 8 - Linens 'n Things Inc. has received a debt financing commitment from Bear Stearns and UBS Securities LLC to help fund its leveraged buyout by Apollo Management LP and co-investors, according to a company news release.

Under the acquisition agreement, a company newly formed and controlled by Apollo, along with co-investors that include NRDC Real Estate Advisors I LLC, will pay $28.00 per share in cash for Linens 'n Things for a total transaction value of $1.3 billion.

The debt financing for the transaction is subject to various conditions, including Linens 'n Things achieving EBITDA of not less than $140 million for the full 2005 fiscal year and comparable net sales of not less than negative 6% for the fourth quarter. The company's EBITDA, prior to adjustments, for the first thirty-nine weeks of 2005 was $54.5 million on an unaudited basis. Comparable store sales for fiscal October were negative 8.4%.

The LBO is expected to close in the first or early second quarter of 2006 and is subject to customary closing conditions, including stockholder approval, completion of debt financing and expiration of antitrust waiting periods.

Linens 'n Things is a Clifton, N.J., retailer of home textiles, housewares and home accessories.

© 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.