Michaels Stores plans $200 million add-on to 7¾% notes due 2018

By Paul A. Harris and Aleesia Forni

Columbus, Ohio, Sept. 20 - Michaels Stores Inc. intends to sell a $200 million add-on to its existing 7¾% notes due Nov. 1, 2018 (Caa1/CCC+), according to a market source.

Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are bookrunners.

The notes carry a make-whole call at Treasuries plus 50 basis points until Nov. 1, 2014 and are then callable at 103.875.

Proceeds will be used to refinance the company's existing debt.

The original $800 million issue priced at 99.262 to yield 7 7/8% on Oct. 7, 2010.

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

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