July 19 (Bloomberg) -- Academy Sports & Outdoors Inc., the closely held retailer of sporting goods that KKR & Co. is buying, proposed rates on a $840 million term loan to back the transaction, according to a person with knowledge of the deal.
The debt, which does not have any financial maintenance covenants, will pay 4.75 percentage points to 5 percentage points more than the London interbank offered rate, said the person, who declined to be indentified because the terms are private.
The loan, which will have a 1.5 percent minimum on the lending benchmark, will be offered at a discount of 98.5 cents on the dollar, according to the person.
Morgan Stanley, which is arranging the debt, is asking lenders to commit to the deal by July 28, the person said.
To contact the reporter on this story: Michael Amato in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Faris Khan at email@example.com