Morgan Stanley launched a $1.8 billion leveraged loan sale for Staples Inc. to refinance its debt load. The deal, which was held at 10:30 a.m. ET on May 14th, was used to refinance other borrowings.
Early pricing discussions suggest the debt could carry interest of up to 525 basis points over the Secured Overnight Financing Rate and be sold at a discounted price of 98 cents to 98.5 cents on the dollar, resulting in a yield of at least 10.5%. Staples has over $7.5 billion in debt outstanding, including a $286 million term loan due in September.
Investor demand for risky debt has been strong, with high-yield bond sales reaching their highest since 2021. Banks including Morgan Stanley are gauging investor interest in a debt-refinancing package.
Source: Bloomberg
