Dutch retail group Vendex KBB NV sold a 275 million euro fixed-rate high-yield bond on Friday, a banker familiar with the sale said.
The 10-year bond was priced at par to yield 7.875 percent, at the low end of the range of 7.875 to 8.0 percent released on Thursday, the banker said.
The deal is part of a financing package backing the company's acquisition by US private equity firms Kohlberg Kravis Roberts & Co L.P. and Dutch firm Alpinvest Partners in July. British private equity firms Permira and Cinven then took large stakes in the retailer, banking sources close to the matter said early in September.
The sponsors were initially looking to split the bond sale into fixed- and floating-rate notes, aiming to sell as much floating-rate paper as possible, a banker said last week. But the plans for a floating-rate tranche were dropped after the company decided the pricing was unfavourable, a market source said on Thursday.
The deal, which was sold via Victoria Acquisition III B.V., is rated B by credit rating agency Standard & Poor's and one notch lower at B3 by Moody's Investors Service.
Citigroup and ING are managing the bond sale.
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