Saks Launches Debt Swap After Seeking Minority Lender Deals

Saks Global Enterprises has launched a debt exchange following weeks of negotiations with creditors as its $600 million fresh financing takes shape, according to a Monday statement.

The struggling retailer has proposed swapping all of its $2.2 billion in 11% bonds due in 2029 for a combination of securities with the same interest rate and maturity, but lower principal. The new debt would be a mix of senior secured asset-based notes issued by a special purpose vehicle, along with two tiers of notes lower on the capital structure issued by Saks Global. Much of the new debt would be further down Saks’ repayment ladder if the company goes bust.