Alliant Techsystems Inc. (ATK:US), the world’s largest ammunition maker, is seeking $1.86 billion of potential financing, while banks providing a buyout loan for Rue21 Inc. (RUE:US) are trying to sell the debt for as little as 80 cents on the dollar.
Alliant, based in Arlington, Virginia, will host a meeting with lenders on Oct. 8 to discuss two term loans totaling $1.26 billion and a $600 million revolving credit line, according to a statement today. A portion of the financing would help fund its $985 million purchase of Bushnell Group Holdings Inc., a maker of binoculars and riflescopes, from private-equity firm MidOcean Partners.
Rue21, the teen-clothing retailer being bought by Apax Partners, is seeking commitments today on a $544 million term loan that will finance the buyout, according to a person with knowledge of the transaction.
The loan, which was increased from an initial $533 million, is being offered to lenders at 80 cents to 82 cents on the dollar, said the person, who asked not to be identified because the terms aren’t set. JPMorgan Chase & Co., Bank of America Corp. and Goldman Sachs Group Inc. committed to provide the acquisition financing.
High-risk, high-yield loan prices averaged 97.51 cents on the dollar today, according to the Standard & Poor’s/LSTA U.S. Leveraged Loan 100 Index.
Investors added $990 million this week to U.S. funds that buy junk loans, bringing this year’s total to $55 billion, according to a research report yesterday from Bank of America Corp.
Hudson’s Bay Co., Canada’s biggest department-store operator, set the final rate on a $2 billion term loan it’s seeking to finance its purchase of New York-based luxury retailer Saks Inc. at 3.75 percentage points more than Libor with a 1 percent floor on the lending benchmark, according to a person with knowledge of the transaction.
A $300 million second-lien loan that’s being arranged for the acquisition may pay interest at 7.5 percentage points to 7.75 percentage points more than Libor, with a 1 percent minimum on the benchmark, said the person, who asked not to be identified because terms aren’t set.
Investors, who are being offered the loan at 99 cents on the dollar, must let lead arranger Bank of America know by noon on Oct. 7 in New York whether they will participate in the financing.
To contact the reporter on this story: Christine Idzelis in New York at email@example.com
To contact the editor responsible for this story: Faris Khan at firstname.lastname@example.org