Credit Suisse First Boston has begun informal chats with investors regarding the bridge loan backing the $5.1 billion buyout of The Nieman Marcus Group by private equity funds Texas Pacific Group and Warburg Pincus.
The bridge will consist of three tranches; an $870 million senior secured tranche, an $840 million senior unsecured bridge loan and an $840 million senior subordinated bridge loan, said several market sources.
"We're not launching the bank deal, but we are going out to traditional bond bridge buyers and offering a piece of the bridge," said one banker. "It is not uncommon to syndicate bridge loans." But he added, "We are doing it a little more broadly because of the tone of the market."
Credit Suisse First Boston, Deutsche Bank, Bank of America and Goldman Sachs are leading the bank deal which is expected to syndicate in the fall. The banker said it could consist of a $600 million asset-based loan, $750 million of floating rate loans and senior secured notes.
A spokeswoman did not respond to calls or emails.