Neiman Marcus Holding Company Inc. launched a junk-bond sale Thursday to refinance debt taken out to emerge from bankruptcy, marking the retailers return to the capital markets just six months after exiting from Chapter 11.<\/p>\n
The troubled upscale department store is marketing a $1 billion five-year first-lien bond. Pricing is expected on Friday.<\/p>\n
Proceeds will pay down the $125 million first-in, last-out facility and repay the roughly $748 million exit term loan and notes due in 2025, resulting in a modest reduction in interest expenses, according to a report Thursday morning by S&P Global Ratings.<\/p>\n
Early pricing discussions are for a yield in the mid-to-high 7% range.<\/p>\n
S&P rated the new notes and company CCC+, seven steps into junk. We continue to view Neimans capital structure as unsustainable based on our expectation for pressured performance through fiscal 2021, the S&P analysts wrote.<\/p>\n
The COVID-19 pandemic shut down Neimans stores and caused an already precarious financial situation to tip it into bankruptcy. The Dallas-based company emerged from Chapter 11 in September under control of creditors Pacific Investment Management Co., Davidson Kempner Capital Management and Sixth Street Partners.<\/p>\n
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Originally posted here:<\/p>\n
Neiman taps junk-bond market to refinance its bankruptcy exit debt - The Dallas Morning News<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Neiman Marcus Holding Company Inc. launched a junk-bond sale Thursday to refinance debt taken out to emerge from bankruptcy, marking the retailers return to the capital markets just six months after exiting from Chapter 11. Continue reading