Gymboree to raise $1.47 billion of debt for Bain leveraged buyout
San Francisco A report released late Monday said that Gymboree Corp., which is being taken private by Boston-based private equity firm Bain Capital LLC, is seeking $1.47 billion of loans to pay for its leveraged buyout.
According to a Bloomberg report, Credit Suisse Group AG and Morgan Stanley agreed to provide a $720 million term loan maturing in seven years and a one-year, $520 million senior unsecured bridge facility with an increasing interest rate. Bank of America Corp. is arranging a $225 million asset-based revolving credit line due in five years as part of the financing package.
Bain agreed to purchase the retailer for $65.40 a share, paying a 57% premium I what is the biggest retail-apparel leveraged buyout in three years, according to Bloomberg.
Bain will fund about 70% of the $1.8 billion acquisition with debt.