PetSmart Pulls $4.65 Billion Chewy Debt Deal as Buyers Balk
- Joint bond and loan sale struggled to generate enough orders
- String of junk-bond deals have been withdrawn in choppy market
Photographer: Andrew Harrer/Bloomberg
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PetSmart Inc. is shelving a $4.65 billion debt sale that would have helped finance its split from its online counterpart Chewy Inc. after struggling to get buyers on board.
The company withdrew its joint junk bond and leveraged loan offering, citing market conditions, according to emailed comments from a PetSmart spokesman Friday. The financing, part of a plan to separate the companies led by private equity firm BC Partners, had yet to generate enough orders to match what it was trying to raise, according to people with knowledge of the matter, who asked not to be identified discussing a private transaction.