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Hudson's Bay signs $275.2m underwriting agreement to finance Saks acquisition

RBR Staff Writer Published 21 August 2013

Hudson's Bay Company, a Canadian department store company, has signed a $275.2m underwriting agreement with a syndicate of underwriters to finance a portion of the $2.9bn acquisition of American Saks Incorporated.

As per the agreement, Hudson's will offload 16,050,000 subscription receipts at a price of $17.15 per subscription receipt to the syndicate led by RBC Capital Markets, CIBC World Markets, BMO Nesbitt Burns, TD Securities and Merrill Lynch Canada.

The Canadian retailer has also issued the syndicate a conditional over-allotment option to purchase up to an additional 1,605,000 subscription receipts for raise up to $27.5m. The option should be exercised within 30 days of closing of offering scheduled 10 September 2013.

Hudson's Bay has inked an a definitive merger agreement with Saks earlier on 28 July 2013 that is expected to consolidate three retail majors - Hudson's Bay, Lord & Taylor and Saks Fifth Avenue.

Following the agreement acquisition, the company will operate 321 stores, including 179 department stores, 73 outlet stores and 69 home stores throughout the US and Canada, along with three e-Commerce sites.