Deals
PetSmart Moves Part of Chewy.com Out of Creditors' Reach
- Retailer is said to shift over a third of Chewy’s assets
- Bonds climb as investors fears of complete spinoff are calmed
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PetSmart Inc. transferred over a third of Chewy.com Inc.’s equity to separate entities, putting the stake out of reach of certain bondholders who financed its purchase a year ago with $2 billion in debt.
The pet superstore sent 20 percent of Chewy’s shares in the form of a dividend to a holding company controlled by its private equity owner BC Partners, according to people with knowledge of the matter. It also moved 16.5 percent of Chewy to an unrestricted subsidiary of PetSmart, said the people, who asked not to be identified because the transfer is private.