Michaels Stores launches $2.344 billion term loan

By Sara Rosenberg

New York, April 30 - Michaels Stores Inc. held a conference call at 4 p.m. ET on Monday to launch a proposed $2.344 billion covenant-light term loan, according to a market source.

Deutsche Bank is the lead bank on the deal.

The term loan is being talked at Libor plus 225 basis points with a step down to Libor plus 200 bps if the corporate rating is upgraded to B1, the source said.

The term loan will carry 101 soft call protection for one year, the source added.

Proceeds will be used to replace an existing term loan of the same size that is priced at Libor plus 275 bps. This existing term loan had been repriced early on in the year from Libor plus 300 bps.

Michaels Stores is an Irving, Texas, specialty 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.