Goldman Sachs and Bear Stearns last Tuesday launched syndication of a seven-year, $295 million term loan for the J. Crew Group. Pricing has not been set. A bank meeting will be held today at the Waldorf Astoria in New York at 10 a.m. The company has also filed with the Securities and Exchange Commission its intent to do an initial public offering. Goldman and Bear Stearns are underwriting the IPO as well.
Moody's Investors Service placed the ratings of the company on review for a potential upgrade after it filed its intent to do the IPO. In a release the company said it will use the proceeds of the offering, along with the proceeds from the sale of $73.5 million of common stock to Texas Pacific Group, its majority shareholder, and borrowings under the loan, to redeem outstanding cumulative preferred stock and pay off some of its outstanding debt.
A spokesman for Texas Pacific declined comment. Calls to Jim Scully, executive v.p. and cfo, were not returned.