Sunday, February 13, 2011

Burlington Coat Factory to raise $1.4B of new debt financing

Phily.com - by Roslyn Rudolph 

 Burlington Coat to raise $1.4B to reduce debt

Burlington Coat Factory Warehouse Corp. said in a filing today that it wants to raise about $1.4 billion of new debt financing to reduce current debt and pay a distribution to its equity holders.

The Burlington-based clothing-store chain, which is privately owned, by Bain Capital L.L.C., but files reports with the Securities and Exchange Commission, said it wanted to repurchase or redeem 11-1/8 percent senior notes due it in 2014 and 14-1/2 percent senior discount notes due in 2014 to Burlington Coat Factory Investments Holdings Inc., of which it is a subsidiary.

The company said Wednesday that it would offer $400 million of senior unsecured notes in a private offering that is exempt from SEC registration requirements.

The company had announced in November that it was scrapping plans to redeem about $400 million worth of its high-interest debt. The company at the time cited changed market conditions and the resulting less favorable pricing.  

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