Staples’ unsecured bonds and term loan, which were both placed in August to fund the issuer’s $6.9 billion buyout by Sycamore Partners, were falling sharply today on news that rival Amazon has extended its free-shipping Prime offerings to businesses, with Business Prime Shipping.
Staples’ $1 billion of 8.5% notes due 2025, which priced at par in August, were down as much as 2.625 points on the day, falling to 89.125, according to MarketAxess. The bonds have fallen from highs of 97.5 since the start of the month.
The 2025 notes, which were downsized from initial terms of $1.3 billion, were issued alongside a first-lien term loan, which was increased by $500 million, to $2.9 billion. The B term loan (L+400, 1% LIBOR floor) was bracketing 96 today, down roughly three points from the start of the week.
The Business Prime Shipping plans have separate offerings for small, medium, and enterprise businesses, offering annual rates in a range of $499–10,099, providing free shipping to more than 100 users in the enterprise category.
This story was excerpted from a full analysis on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.