Michael's Stores sets talk on $1.075 billion two-part notes offering

By Paul A. Harris

St. Louis, Oct. 20 - Michael's Stores Inc. circulated price talk on its $1.075 billion two-part notes offering on Friday, according to an informed source.

The Irving, Texas, specialty retailer talked its $750 million tranche of eight-year senior notes (B2/CCC), at the 9¾% area.

Meanwhile Michael's Stores talked its $325 million tranche of 10-year senior subordinated notes (Caa1/CCC) at the 11¼% area.

Deutsche Bank Securities is the left bookrunner for the Rule 144A offering. JP Morgan, Banc of America Securities LLC and Credit Suisse are joint bookrunners.

The company will also put in place a $3.4 billion credit facility.

Proceeds will be used to help back LBO by Bain Capital and The Blackstone Group.

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