Kmart Deal Hits The Shelves

  • 17 Feb 2002
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Kmart's $2 billion DIP facility launched on Valentine's Day raised $500 million by the end of last week with bankers saying the market is reacting with enthusiasm. The deal is priced at LIBOR plus 31/ 2% across the board with a 3/4 % commitment fee on the $1.8 billion revolver. There is also a $200 million letter of credit facility for the bankrupt retailer, which has set out ambitious plans for a quick re-emergence in 2003, according to a banker. The tenor on the DIP is 27 months, in which time, Kmart plans to invest in new technology, close unprofitable stores, and terminate the leases of about 350 stores.

The discount retailer has for some time struggled behind rivals like Wal-Mart, but it was not until a Prudential Securities analyst suggested Chapter 11, that bankers took notice and Kmart fell rapidly (LMW, 1/14). Lead arranger and administration agent on the deal is J.P. Morgan while co-lead arranger and documentation agent is Fleet Retail Finance. Co-syndication agents are Credit Suisse First Boston and General Electric Capital Corp. Calls to Steve Pagnani, Kmart spokesman, were not returned.

  • 17 Feb 2002

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 14,443 29 18.07
2 Bank of America Merrill Lynch (BAML) 8,264 27 10.34
3 Lloyds Bank 7,329 24 9.17
4 Citi 6,748 19 8.44
5 JP Morgan 5,220 8 6.53

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 117,261.12 337 11.09%
2 Bank of America Merrill Lynch 94,721.79 272 8.96%
3 JPMorgan 92,612.23 269 8.76%
4 Wells Fargo Securities 82,597.19 239 7.81%
5 Credit Suisse 69,442.99 183 6.57%