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Hudson's Bay Proposed Interest Rate On Loan To Buy Saks

Wednesday September 25th, 2013 - 9:31AM

Hudson's Bay Company proposed the interest rate on a $1.9 billion, seven-year term loan it’s seeking to support its purchase of Saks, Bloomberg reported.

The  loan may pay interest at 3.25 percentage points to 3.5 percentage points more than the London interbank offered rate, with a 1% minimum on the lending benchmark, according to Bloomberg sources.

Hudson’s Bay agreed to buy New York-based Saks for $2.4 billion. The transaction includes a $900 million unsecured bridge portion, according to a July 29 regulatory filing.