Neiman Marcus Group said it plans to sell $1.56 billion in bonds to help pay for its $6 billion buyout by Ares Management and the Canada Pension Plan Investment Board.
Subject to market conditions, the company said it plans to “launch a private placement of $960 million principal amount senior cash pay notes due 2021 and $600 million senior [payment-in-kind] toggle notes due 2021.” The toggle notes allow Neiman’s to make payments on that debt in either cash or additional notes.
Neiman’s also plans to take on a $2.95 billion term loan to fund the deal.
All together, the buyout is expected to boost Neiman’s debt to $4.6 billion from $2.7 billion. Ares and the pension fund plan to cover a quarter of the purchase price themselves.
The retailer is also taking on an $800 million senior secured asset-based revolving credit facility, which will help it maintain its liquidity.
Alberta Ferretti's "Rainbow Week" sweaters are back. The designer closed her #MFW show with a few day-of-the-week sweaters, which first debuted on the catwalk last January as part of the pre-fall 2017 collection. #wwdfashion (📷: @delphineachard)