Wall Street banks including JPMorgan Chase and UBS have begun pitching a $4.25bn debt financing package to investors to support private equity firm Sycamore Partners’ buyout of UK pharmacy chain Boots, according to a report by Bloomberg.
The debt offering, split between term loans and secured bonds in multiple currencies, forms part of the broader leveraged buyout of Walgreens Boots Alliance, which includes around $20bn in debt and $2.5bn in equity.
The financing is being pre-marketed in tranches: $2.25bn in term loans and $2bn in secured notes, with pricing discussions indicating relatively generous spreads amid a hot junk debt market. The loans, denominated in US dollars, euros, and British pounds, are reportedly attracting strong investor interest due to the scarcity of large new-money deals.
