Michaels increases term loan B amount to $1.67 billion

By Sara Rosenberg

New York, Sept. 17 – Michaels Cos. Inc. upsized its seven-year covenant-lite term loan B to $1.67 billion from $1.62 billion, according to a market source.

Pricing on the term loan remained at Libor plus 350 basis points with a 0.75% Libor floor and an original issue discount of 98.5.

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

J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities inc., Truist, Goldman Sachs Bank USA, Barclays, US Bank, BMO Capital Markets, Fifth Third, Credit Suisse Securities (USA) LLC and UBS Investment Bank are the leads on the deal.

Proceeds will be used to refinance an existing term loan and to pay related fees and expenses.

Other funds for the refinancing will come from $375 million of notes, which were downsized from $500 million, and cash on hand.

Michaels is an Irving, Tex.-based retailer of arts and crafts supplies and home decor products.

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