Michaels Stores narrows down pricing on term loan extension offer

By Sara Rosenberg

New York, Dec. 8 - Michaels Stores Inc. updated price talk on its extended term loan debt to Libor plus 450 basis points with an original issue discount of 99 from initial guidance of Libor plus 450 bps to 475 bps with an offer price of 99 to par, according to a market source.

As before, the debt has no Libor floor.

Under the amendment and extension proposal, the company is looking to push out the maturity on $400 million of its roughly $1 billion of non-extended term loan debt to July 2016 from Oct. 31, 2013 to match the maturity on its term loan B-2.

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.

Commitments were due end of day on Thursday.

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.

© 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.