Neiman Said to Seek $3.75 Billion in Loans to Fund Ares Buyout

Neiman Marcus Group, the luxury retailer being acquired by Ares Management LLC and the Canada Pension Plan Investment Board, is seeking a $2.95 billion term loan as part of its financing to fund the buyout.

Credit Suisse Group AG is leading the transaction, which includes the seven-year term piece and an $800 million asset-backed loan that matures in five years, according to a person with knowledge of the deal, who asked not to be identified because the financing is private. The bank will host a meeting with potential lenders on Oct. 7 at 1:30 p.m. in New York.

Ares and the pension fund are buying the retailer from TPG Capital and Warburg Pincus LLC, which acquired it for about $5 billion in a 2005 leveraged buyout. Last month the company obtained $1.56 billion in bridge facilities as part of the financing.

Lenders to the term loan, which doesn’t contain financial maintenance requirements, must let the bank know by Oct. 16 if they will participate in the deal, the person said.

Bridge facilities are short-term loans that usually mature in one year and are often used as backstops to bond offerings or longer-dated bank debt.

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