Daily News: September 29, 2014

U.S. Bank Provides Bluestem ABL upon Sale Close

Capmark Financial announced that it has entered into a series of agreements pursuant to which it will acquire Bluestem Brands.

Under the terms of the transaction, Capmark will acquire Bluestem for approximately $565 million in cash, subject to various pre- and post-closing adjustments. The company expects to fund the purchase price and associated transactional expenses with cash on hand, an equal amount of cash invested in the company by affiliates of Centerbridge Partners through the exercise of warrants, and a $300 million term debt facility to be issued by Bluestem and led by Credit Suisse and Jefferies Finance. Certain members of Bluestem’s management team are also providing capital for the transaction. In addition, Bluestem will have upon closing a new $80 million asset-based lending facility led by U.S. Bank.

The closing of the acquisition, which is expected to occur in Q4/14, is subject to customary conditions, including compliance with the filing and waiting period requirements under Hart-Scott-Rodino Act.

Bluestem Brands is a multi-brand, online retailer of a broad selection of name-brand and private label general merchandise serving low-to-middle income consumers nationwide.