Daily News: March 27, 2012

HD Supply Intends to Refinance ABL, Launches Notes Offering


HD Supply, Inc. announced that it intends to commence a private offering of Senior Secured First Priority Notes due 2019 and Senior Secured Second Priority Notes due 2020. HD Supply also intends to concurrently refinance its ABL credit facility and senior secured term loan facility.

In addition to refinancing its ABL credit facility and senior secured term loan facility, HD Supply intends to use the estimated $1,850 million of aggregate proceeds from the sale of the First Priority Notes and first lien term loan borrowings under new credit facilities together with borrowings under a new ABL credit facility, the estimated $775 million of proceeds from the sale of the Second Priority Notes and the incurrence of other indebtedness to refinance its 12% Senior Cash Pay Notes due 2014.

According to a related Bloomberg article, Bank of America, Goldman Sachs Group, Barclays, Credit Suisse Group, Deutsche Bank, JPMorgan Chase, Wells Fargo and UBS are arranging the term loan portion, and GE Capital Markets is arranging the ABL portion of the loan.

HD Supply is an industrial distribution company, partially owned by Carlyle Group, Bain Capital and Clayton, Dubilier & Rice.

To read the Bloomberg article in its entirety, click here.