Saks Owner Hudson’s Bay Is Selling Junk Bonds for Neiman Deal
- Hudson’s Bay agreed to buy Neiman Marcus for $2.65 billion
- Jefferies had sounded out potential investors at about 10.5%
A Neiman Marcus store in Garden City, New York.
Photographer: Yuki Iwamura/BloombergThis article is for subscribers only.
Hudson’s Bay Co., the owner of luxury retailer Saks Fifth Avenue Inc., is tapping the junk-bond market to help finance its acquisition of Neiman Marcus Group.
The $2 billion, five-year bond was launched on Monday, according to a person with knowledge of the matter, who asked not to be identified discussing a private transaction. Pricing will take place on Tuesday and proceeds will be used for the acquisition and to refinance existing debt, said the person, asking not to be identified discussing private details.