Banks have rejiggered the debt that will help finance a dividend to the private equity owners of office supplies company Staples, one of the banks leading the deal said on Monday.
The debt will help finance a roughly US$1bn dividend to private equity firm Sycamore Partners, which bought the Staples business in 2017.
The bond portion of the financing - split between secured and unsecured bonds - has been increased to US$3.025bn from US$2.125bn. The term loan has been downsized to US$2.3bn from US$3.2bn, according to the bond document.
The seven-year non-call three secured bond, rated B1/B+, has been increased almost threefold to US$2.025bn from US$750m, while the eight-year non-call three unsecured bond, rated B3/B-, has been cut to US$1bn from US$1.375bn.
Price talk on the secured bond is 7.25%-7.5%, which is tighter than whispers of 7.50%-7.75%. Price talk on the unsecured bond is 10.75% area, which is wider than whispers of 10%-10.25%.
The bonds are expected to price Tuesday. Goldman Sachs is left lead. nL1N21M18L
UBS is leading the Term Loan B.
