A $2 billion, seven-year term loan, increased from $1.9 billion, may now pay interest at 3.75 percentage points to four percentage points more than the London Interbank offered rate, up from an initially proposed range of 3.25 percentage points to 3.5 percentage points more than the lending benchmark, according to a source who spoke to Bloomberg.
The company added a $300 million second-lien term portion that expires in eight years and replaces a senior unsecured bond that Hudson’s Bay had considered offering. While the interest rate hasn’t yet been proposed, the lending benchmark will have a one percent minimum.
Bank of America Corp. is leading the financing. The debt is being offered at 99 cents on the dollar.
A lender call to discuss the second-lien slice will take place on October 7.
Hudson’s Bay agreed to buy New York-based Saks for $2.4 billion.