Article
Michaels Launches Part of $3.75B Debt Package to Refi Capital Structure
Arts and crafts retailer Michaels launched a $1.1 billion term loan B today, Feb. 11, to refinance its capital structure, according to sources.
Price whispers on the UBS-led loan are coming at SOFR+475-500 bps and 98 OID, according to sources. $1.7 billion in secured bonds, also led by UBS, and $950 million in second lien bonds, led by JPMorgan, are also part of the refinancing package, sources said. In addition, there is a $1.1 billion asset-based lending facility.
The Apollo-backed company consulted with banks on a potential premarketing of new debt, Octus reported last week.
A leveraged finance banker close to Michaels’ deal said the banks have done a significant amount of premarketing, so the deal should be well received.
Michaels’ 2028 loan was last quoted at 99.5/100.13, according to Solve. Its 2028 bonds were last quoted at 99.83 to yield 5.33%, according to MarketAxess.
An estimate of the company’s capital structure as of Jan. 31, 2025, is shown below:
An estimate of CLOs with the largest exposure to Michaels is shown below:
UBS and JPMorgan declined to comment. Apollo and Michaels did not respond to requests for comment.
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