KKR’s Pets at Home Said to Plan $200 Million of Leveraged LoansPatricia Kuo
Pets at Home Ltd., a U.K. pet accessories supplier owned by Kohlberg Kravis Roberts & Co., plans to raise about 135 million pounds ($206 million) of new loans, according to two people with knowledge of the matter.
Lenders are invited to a meeting in London on Feb. 26 to hear details of the new debt and for an update on company performance, said the people, who asked not to be identified because the deal is private. KKR Capital Markets and Nomura Holdings Inc. are managing the transaction, they said.
The Handforth, U.K.-based company raised a 130 million-pound term loan C last year to replace more costly mezzanine debt. It agreed to pay an initial interest of 550 basis points more than the London interbank offered rate for that loan, according to data compiled by Bloomberg. A basis point is 0.01 percentage point.
Sales of the retailer rose 7 percent to 544 million pounds in the year ended March 2012 while earnings before interest, taxes, depreciation and amortization increased to 92 million pounds, according to its latest financial report.
KKR raised 510 million pounds of buyout debt to back its acquisition of Pets at Home in 2010, Bloomberg data show.