Michaels Stores looks to amend and extend $400 million of loans

By Sara Rosenberg

New York, Dec. 5 - Michaels Stores Inc. held a conference call on Monday to launch an amendment and extension of $400 million of its roughly $1 billion of non-extended term loan debt, according to a market source.

Under the proposal, the maturity on the term loan borrowings would be pushed out to July 2016 from Oct. 31, 2013, to match the maturity on the company's term loan B-2.

Price talk on the extended loan is Libor plus 450 basis points to 475 bps with no Libor floor and an offer price of 99 to par, the source said.

By comparison, pricing on the non-extended term loan debt is Libor plus 225 bps, while pricing on the existing extended term loan B-2 is Libor plus 450 bps.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the lead banks on the deal.

Michaels Stores is an Irving, Texas-based retailer of arts, crafts, framing, floral, wall decor and seasonal merchandise for the hobbyist and do-it-yourself home decorator.

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