Credit Suisse, Bank of America and Wells Fargo have been tapped to lead syndication of an $850 million credit facility to back the leveraged buyout of Petco, according to a Securities and Exchange Commission filing. Terms of the deal could not be determined. Leonard Green & Partners and Texas Pacific Group are taking the San Diego-based retailer private in a $1.68 billion acquisition.
Leonard Green and Texas Pacific agreed to pay $29 per share in cash--a 49% premium of the market's $19.45 closing price the day before. The two invested in Petco six years ago and let it loose back into the market in 2004.
Petco last tapped the market in January 2005 to refinance existing debt with a six-year, $350 million revolver led by Wells Fargo. Pricing was LIBOR plus 137.5 basis points and had an accordion option to extend the facility for an additional year and increase the loan by $100 million.
Calls to Rodney Carter, Petco cfo, and a spokesman were not returned. A spokesman for Leonard Green and Texas Pacific declined comment.