Pets at Home’s 130 Million-Pound Term Loan C Rises in Trading
Pets at Home Ltd.’s new 130 million- pound ($202 million) term loan C, which replaced the retailer’s more costly mezzanine debt from its 2010 buyout, rose in trading today, two people with direct knowledge of the deal said.
The six-year debt due March 2018 was sold to investors at a discount of 99.5 pence in the pound and began trading at a mid- price of 100.125 pence, said the people, who declined to be identified as transactions are private. An existing term loan B raised in 2010 is trading at a mid-price of 99.75 pence on the pound, according to the people.
The U.K. pet accessories supplier owned by Kohlberg Kravis Roberts & Co. (KKR) pays interest at 550 basis points more than the London interbank offered rate on the new loan, which replaced a mezzanine portion that paid interest of 10.75 percentage points more than the benchmark, according to data compiled by Bloomberg. A basis point is 0.01 percentage point.
KKR raised 510 million pounds of leveraged loans to back its buyout of the Handforth, England-based company in 2010, including 135 million pounds of mezzanine debt, according to data compiled by Bloomberg. KKR Capital Markets and Nomura Holdings Inc. arranged the new term loan C, said the person.
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