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NEW YORK (
The Deal) --
Hudson's Bay Co. said Monday it was taking the "for sale" sign off iconic department store chain
Saks(SKS) for $16 per share or about $2.9 billion. There is a 40 day "go shop" period.
The deal will combine Saks with Canada's Hudson's Bay department store and the
Lord & Taylor chain -- which
NRDC Equity Partners bought in 2006 for $1.2 billion before it acquired Hudson's Bay in a company that generated pro forma sales and normalized EBITDA in fiscal 2012 of approximately C$7.2 billion ($7 billion) and C$587 million respectively.
Financing for the transaction is expected to come from $1 billion of new equity,$1.9 billion in senior secured loans, $400 million of senior unsecured notes and available cash.
Ontario Teachers' Pension Plan and
West Face Capital Inc. are putting $500 million and $250 million of equity funding, respectively, into the deal. Additional credit facilities are being provided by
BofA Merrill Lynch(BAC - Get Report) and
Royal Bank of Canada(RY - Get Report).
BofA Merrill Lynch acted as lead financial adviser to HBC, joined by
RBC Capital Markets, while
Stikeman Elliott and
Willkie Farr & Gallagher provided legal counsel. Saks turned to
Goldman Sachs(GS - Get Report),
Morgan Stanley(MS - Get Report) and
Guggenheim Securities acted for financial advice and
Wachtell, Lipton, Rosen & Katz as legal counsel.