Michaels Stores prices $850 million term loan at Libor plus 300 bps

By Paul A. Harris

Portland, Ore., June 6 - Michaels Stores Inc. priced an $850 million covenant-light term loan B-2 due January 2020 (Ba3/B+) with a 300 basis points spread to Libor, a 1% Libor floor and an original issue discount of 99.5 on Friday, according to a market source.

The price came at the rich end of the 99 to 99.5 price talk. The spread and floor came on top of talk.

Timing was moved ahead from the previously announced June 10 deadline.

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

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Barclays, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Wells Fargo Securities LLC, Guggenheim and Macquarie Capital (USA) Inc. are the leads on the deal.

Proceeds will be used to refinance the company’s existing senior notes due 2018.

Michaels Stores is an Irving, Texas-based arts and crafts specialty retailer.

© 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.