The Michaels Companies, Inc. Announces Pricing of Senior Secured Notes
September 17 2020 - 5:11PM
Business Wire
The Michaels Companies, Inc. (NASDAQ: MIK) (the “Company”) today
announced that its indirect, wholly owned subsidiary, Michaels
Stores, Inc. (the “Issuer”), priced its offering of $375 million in
aggregate principal amount of Senior Secured Notes due 2027 (the
“Notes”). The Notes are expected to be guaranteed by the Issuer’s
parent and substantially all of its subsidiaries. The Issuer
intends to use the net proceeds from the offering, together with
borrowings under a proposed term loan and cash on hand, to
refinance the Issuer’s existing term loan and to pay related fees
and expenses.
The Notes will bear interest at a rate of 4.750% and will pay
interest semi-annually in cash in arrears on October 1 and April 1
of each year, beginning on April 1, 2021. The Notes will mature on
October 1, 2027. The offering is expected to close on or about
October 1, 2020, subject to customary closing conditions.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the Notes. The Notes have not been,
and will not be, registered under the Securities Act of 1933, as
amended (the “Act”), or any state securities laws and may not be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the Act
and other applicable securities laws. Any offers of the Notes will
be made only by means of a private offering memorandum. This press
release is being issued pursuant to and in accordance with Rule
135c under the Act.
The Notes have been offered only to persons reasonably believed
to be qualified institutional buyers in the United States in
reliance on Rule 144A under the Act and outside the United States
pursuant to Regulation S under the Act.
Forward-Looking Statements
Certain statements in this press release are forward-looking
statements. Such statements involve a number of risks,
uncertainties and other factors, including the ability to
consummate the offering on the terms described or at all and
potential changes in market conditions, which could cause actual
results to differ materially. There can be no assurance that the
Issuer will be able to complete the proposed offering on the
anticipated terms, or at all. You should not place undue reliance
on these forward-looking statements, which apply only as of the
date of this news release. Other risks and uncertainties are more
fully described in the Company’s filings with the Securities and
Exchange Commission, including the “Risk Factors” section of the
Company’s Annual Report on Form 10-K for the fiscal year ended
February 1, 2020 and Quarterly Reports on Form 10-Q for the
quarters ended May 2, 2020 and August 1, 2020. We intend these
forward-looking statements to speak only as of the time of this
release and do not undertake to update or revise them as more
information becomes available, except as otherwise required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20200917006009/en/
Investor Contact: Jim Mathias 972.409.1393
James.Mathias@michaels.com
ICR, Inc. Farah Soi, 203.682.8200 Farah.Soi@icrinc.com
or
Financial Media Contact ICR, Inc. Jessica Liddell / Julia
Young 203.682.8200 Michaels@icrinc.com
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