THE WHAT? Boots has increased the size of its dollar-denominated term loan to US$1 billion while further reducing the overall size of its bond issuance to fund its acquisition by Sycamore Partners.
THE DETAILS The debt package backing the buyout now leans more heavily on loans, with Boots’ total term loan package reaching US$3 billion-equivalent, up from the original US$2.25 billion. The bond component has been cut to €1.25 billion-equivalent, split between euros and sterling, with the dollar bond tranche scrapped entirely.
Investor demand appears strong, with all three loan tranches tightening price guidance. The updated terms include:
- USD loan: 350–375 bps over SOFR (down from 375–400)
- Euro loan: 350–375 bps over Euribor (down from 375–400)
- Sterling loan: 475–500 bps over Sonia (down from 500)
Both the loans and bonds carry seven-year maturities, but the term loans offer a soft call feature after six months, giving Boots…
