PetSmart launches $2.3B term loan for refinancing

A J.P. Morgan-led arranger group has launched a $2.3 billion term loan B due January 2028 for PetSmart Inc. that will be used to refinance the issuer’s existing TLB and notes, according to sources. Commitments are due by Feb. 2.

Price talk for the seven-year TLB is L+450, with a 0.75% Libor floor, offered at 99. That works out to a yield to maturity of roughly 5.54%. Lenders are offered six months of 101 soft call protection.

Joint lead arrangers on the deal are Apollo, Barclays, Citi, Credit Suisse, Jefferies, MUFG, RBC Capital Markets, UBS and Wells Fargo.

PetSmart, backed by BC Partners, is a specialty retailer of pet products and services in North America. Current corporate ratings are B-/B2, with positive and stable outlooks.