By Wendy Van Sickle
Columbus, Ohio, Sept. 17 – Michaels Cos., Inc. downsized its offering of 4¾% seven-year senior secured notes (expected ratings Ba3/B+) in a drive-by on Thursday, according to a news release.
The issue size was downsized from $500 million.
Price talk was set in the 4 7/8% area, tighter than initial guidance in the 5¼% to 5½% area.
J.P. Morgan Securities LLC is leading the offering.
The notes come with three years of call protection.
The Irving, Tex.-based retailer of arts and crafts supplies plans to use the proceeds, together with proceeds from a proposed term loan and cash on hand, to refinance its existing term loan.
| Issuer: | Michaels Cos., Inc.
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| Amount: | $375 million
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| Maturity: | Oct. 1, 2027
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| Securities: | Senior notes
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| Bookrunner: | J.P. Morgan Securities LLC
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| Coupon: | 4¾%
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| Call protection: | Three years
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| Trade date: | Sept. 17
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| Settlement date: | Oct. 1
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| Expected ratings: | Moody's: Ba3
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| S&P: B+
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 4 7/8% area, tightened from 5¼% to 5½% area
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| Marketing: | Drive-by
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