PetSmart wraps $2.3B term loan tight to talk; terms

Investors have received allocations of PetSmart Inc.'s $2.3 billion term loan B due January 2028 that priced tight to talk at L+375, with a 0.75% Libor floor and an issue price of 99 via a J.P. Morgan-led arranger group, according to sources. The loan freed to a 99.25/99.75 market. Proceeds from the TLB, along with those from a $2.35 billion, two-part bond offering and about $1.3 billion of equity from the parent company, will be used to refinance the company's existing term loan, asset-based revolving credit facility, and outstanding notes — including the 5.875% bonds due 2025, the 8.875% bonds due 2025 and the 7.125% notes due 2023. PetSmart, backed by BC Partners, is a specialty retailer of pet products and services in North America. Terms: