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Edgars consolidated stores limited announces Multi-Tranche

01 June 2007

Edgars Consolidated Stores Limited ("Edcon") announced today that affiliates of Edcon (the "Issuers") intend to offer €1,830,000,000 of high yield notes. 

The multi-tranche offering will consist of 1,180,000,000 of senior secured floating rate notes with a maturity of 2014 and 650,000,000 of senior notes, split between fixed and floating rate tranches, in each case with a maturity of 2015.

The Issuers intend to use the proceeds of the offering to repay in full the outstanding indebtedness under their asset acquisition bridge facilities, which in turn were used to fund in part the acquisition of the business and assets of Edcon. The Issuers are indirectly controlled by funds managed or advised by Bain Capital, LLC (Bain Capital). The offering will be led by joint book-running managers Barclays Capital, Credit Suisse and Deutsche Bank.

Edcon is the largest non-food retailer in South Africa and is the number one or number two retailer in the majority of its product lines, including clothing, footwear, mobile phones, cosmetics, stationery and books. Edcon operates over 900 stores under 13 retail chains, with the Edgars department store chain, which opened in 1929, being its largest chain by retail sales.

Edcons equity sponsor is an affiliate of Bain Capital, a leading global private investment firm with approximately US$50 bn of assets under management. Bain Capital has significant industry experience, including investments in leading retail companies such as Burlington Coat Factory and Toys R Us, and has a proven track record of actively managing and supporting its investments.

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