The buyer said it would finance the transaction and refinance some of its existing debts with a combination of about $1 billion in new equity, $1.9 billion of senior secured loans, $400 million in senior unsecured notes and available cash on hand. An entity affiliated with Ontario Teachers' Pension Plan and funds advised by West Face Capital have committed to providing Hudson's Bay with $500 million and $250 million, respectively, to support the deal.
Hudson's Bay said that the equity commitments, coupled with fully committed credit facilities provided by Bank of America Merrill Lynch and Royal Bank of Canada, would be sufficient to close the deal.
A BofA Merrill Lynch team of David Russell, Jeff Rose, Ryan Seifert and Reggie Hayes acted as lead financial adviser to Hudson's Bay, with RBC Capital Markets also serving as a financial adviser on the transaction. Stikeman Elliott LLP and Willkie Farr & Gallagher LLP acted as legal counsel to Hudson's Bay.
Saks received financial advice from Goldman Sachs & Co., Morgan Stanley and Guggenheim Securities and legal advice from Wachtell, Lipton, Rosen & Katz.
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