Bloomberg reported:
HD Supply Inc., the industrial distribution company partly owned by Carlyle Group LP, Bain Capital LLC and Clayton, Dubilier & Rice LLC, is seeking to refinance both its asset-based credit line and senior secured term loan facility.HDSupply's 10-K stated:
In addition to the refinancing the company is marketing a private offering of first-lien notes due 2019 and second-lien notes that mature in 2020, Atlanta-based HD Supply said today in a statement.
Proceeds from a new covenant-lite term loan B, along with drawings under a new $1.5 billion asset-based revolving line of credit and the new debt, will be used to refinance the company’s 12 percent senior notes due in 2014
The Senior Secured Credit Facility contains various restrictive covenants including limitations on additional indebtedness and dividend payments and stipulations regarding the use of proceeds from asset dispositions.Carlyle's held HDSupply since 2007. That's a long time to constrain a liquidity recap. When it blows, it could be Macondo like. Watch out for falling black gold.
The 12.0% Senior Notes contain various restrictive covenants including limitations on additional indebtedness and dividend payments and stipulations regarding the use of proceeds from asset dispositions.
Update 3-27-12: HD Supply sold its Industrial Pipes division for $470 million. Ramp up the monetization!
