Gap Floating $2.25 Billion in New Debt Financing
Struggling retailer Gap (NYSE: GPS) is raising $2.25 billion by issuing new debt, the company announced Thursday.
This will come from three senior secured notes. The first has an aggregate principal amount of $500 million, an annual interest rate of 8.375%, and matures in 2023. The second is a $750 million issue bearing a rate of 8.625% and maturing in 2025. The third's aggregate principal amount is $1 billion, its interest is 8.875%, and it matures in 2025.
Gap will utilize the net proceeds of these issues to refinance the outstanding amounts under a $500 million revolving credit facility that expires in May 2023 and "for general corporate purposes." It believes the issues of the notes will close on or around Thursday, May 7.
Source Fool.com
