Michaels Taps $800M In PIK Notes To Pay Bain, Blackstone

Law360, New York (July 25, 2013, 1:10 PM EDT) -- Crafts giant Michaels Stores Inc. on Thursday priced an offering of $800 million of senior pay-in-kind toggle notes to fund a dividend to its private equity owners, Blackstone Group LP and Bain Capital, ahead of a long-delayed initial public offering.

The 2018 notes, upsized from $700 million, will be sold to qualified investors in a private placement, the company said. PIK toggle notes, as they are known, allow the borrower to pay interest either in cash or in new debt, or “in kind.”

Michaels' notes carry...
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