Staples sponsor Sycamore Partners is in the process of selling down its position in the issuer’s unsecured notes, after a lock-up agreement rolled off this past September, according to two sources familiar with the matter.
The sponsor stepped in to lend a hand to syndication of the USD 1bn 10.75% senior unsecured notes due 2027 this past April, taking down at least USD 180m of the tranche. The Goldman Sachs-led notes were part of a USD 5.325bn financing package that yielded a USD 1bn dividend to the equity holders.
The deal went through several rounds of changes as investors raised concerns about covenant leeway and sponsor strategy.
At the time, Sycamore agreed to not to flip any of its holdings, signing onto a lockup agreement through 1 September, as reported.
The sponsor is now offloading the notes through non-bulge bracket firms such as Stifel, one of the sources added.
The notes have softened in trading over the last month, changing hands today at 102.76 to yield 9.948%, down from the 104-104.25 range at the beginning of November, according to MarketAxess.
Sycamore declined to comment. Staples did not respond to a request for comment.