Men's Wearhouse plans new debt financing for Jos. A Bank acquisition

By Sara Rosenberg

New York, March 11 - The Men's Wearhouse has received a commitment for debt financing to help fund its purchase of Jos. A. Bank Clothiers, according to a news release.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are the lead banks on the deal.

Under the agreement, Jos. A. Bank is being acquired for $65.00 per share in cash, or total consideration of $1.8 billion.

The combined company will have sales of $3.5 billion on a pro forma basis, and the strong free cash flow generated by the combined company is expected to enable rapid deleveraging, the release said.

Closing is expected by the third quarter, subject to the satisfaction of customary conditions, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and the tender of a majority of Jos. A Bank shares.

In connection with this transaction, Jos. A. Bank has terminated its agreement to acquire Everest Holdings LLC, the parent company of Eddie Bauer, for $564 million in cash and about 4.7 million in new shares of common stock, and its previously announced tender offer to purchase up to $300 million of its common stock.

The Eddie Bauer acquisition financing commitment consisted of a $500 million ABL revolving credit facility and a $400 million senior secured bridge loan, led by Goldman Sachs Bank USA.

Men's Wearhouse is a Houston-based specialty retailer of men's apparel. Jos. A. Bank is a Hampstead, Md.-based designer, manufacturer and retailer of men's apparel, footwear and accessories.

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