Saks Debt Swap Takes Shape Amid Fresh Financing Talks

Saks Global Enterprises has launched a debt exchange, proposing to swap $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 will be a mix of senior secured asset-based notes and notes lower on the capital structure. Creditors will receive different securities based on their participation in the deal, with some taking a haircut and others not. The exchange aims to raise $600 million in fresh financing, with a slim majority of bondholders having already agreed to participate.

Saks Global Enterprises LLC (Saks Global) has initiated a debt exchange offer, proposing to swap $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 will be a mix of senior secured asset-based notes and notes lower on the capital structure. Creditors will receive different securities based on their participation in the deal, with some taking a haircut and others not. The exchange aims to raise $600 million in fresh financing, with a slim majority of bondholders having already agreed to participate [3].

The company announced the commencement of the exchange offer and consent solicitation for the outstanding 11% senior secured notes due in 2029. Holders of approximately 92% of the aggregate principal amount of the outstanding Old Notes have already agreed to tender to the Exchange Offer [3].

The debt exchange is part of Saks Global's broader strategy to optimize its capital structure and improve financial flexibility. The new debt securities will have a lower principal amount, allowing the company to reduce its debt burden and potentially lower its interest expenses. Additionally, the mix of senior secured asset-based notes and lower capital structure notes will provide Saks Global with a more diversified debt profile, potentially improving its credit profile and access to capital markets [3].

The company has not provided specific details on the exact composition of the new debt securities or the terms of the exchange offer. However, it is expected that the new securities will be structured to provide the same interest rate and maturity as the existing bonds, with the principal amount reduced to reflect the lower principal of the new debt [3].

The debt exchange offer is a significant step for Saks Global in its ongoing efforts to strengthen its financial position and improve its operational flexibility. By reducing its debt burden and diversifying its capital structure, the company aims to enhance its ability to invest in growth opportunities and improve its overall financial performance [3].

References:

[1] https://www.nasdaq.com/articles/sl-green-surpasses-1-bln-goal-nyc-focused-opportunistic-debt-fund
[2] https://www.marketscreener.com/news/autoliv-presentation-q2-2025-2-88-mb-alv-er-q2-2025-presentation-ce7c5cdedf8cfe23
[3] https://www.prnewswire.com/news-releases/saks-global-announces-commencement-of-exchange-offer-and-consent-solicitation-for-outstanding-11-000-senior-secured-notes-due-2029--302509768.html