HBC appears on track to close on its $2.65 billion deal to buy the Neiman Marcus Group
“We are working with Jefferies Financial Group on a bond. It’s going very well. It’s oversubscribed,” Richard Baker, HBC executive chairman and chief executive officer, told WWD on Wednesday.
While multiple sources had suggested that the funding from Apollo perhaps could be in doubt, two sources close to the process confirmed Baker’s account and said money was buttoned up and ready to be used in the deal. Apollo declined comment. In July, HBC also said it obtained a $2 billion fully committed revolving asset-based loan facility from Bank of America , Citigroup, Morgan Stanley, RBC Capital Markets and Wells Fargo.
That would be good news for vendors, considering Saks has been delinquent on payments owed to many of them and multiple sources say it continues to be slow in paying vendors. Last August, a rare conference call between Baker, Marc Metrick, CEO of Saks Global, and Jennifer Bewley, chief financial officer of HBC, provided updates to Saks and Saks Off 5th vendors.
Initially the government was expected to take a close look at the deal especially, because it involved Amazon and, in the view of many observers, because it put HBC in a position to raise prices, close stores, lay off workers and increase pressure on vendors. But the Federal Trade Commission, which successfully derailed Tapestry Inc.’s $8.5 billion acquisition of Capri Holdings, gave the deal a green light without making a second request for more information..
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