Archive · 2 Aug 2025
Saks' New Loan Offered at Discount Amid Debt Exchange Deadline
Saks, a luxury retailer, is having financial troubles.
They recently took out a new loan, but some of it is already being sold at a discount.
This is happening because the company is trying to restructure its debt, and creditors have a deadline to agree to new terms.
The deal involves changing how the company pays back its debts and creating different levels of priority for creditors.
The price of Saks' existing bonds has dropped significantly, signaling financial distress.
Saks is also working to get more money and negotiate with some creditors who own a smaller part of their debt.
Saks Global Enterprises' new loan is being offered at below-par prices in the secondary market.
Creditors had until the end of the day Friday to agree to favorable terms on a $2.2 billion debt exchange.
The debt exchange rearranges repayment priorities, creating new securities tiers.
The company's 11% bonds were trading Friday at 23 cents, down from 35 cents on July 22.
Saks is working to raise additional financing and discussing terms with minority creditors.
- Who
- Saks Global Enterprises, bondholders, and creditors.
- What
- Saks' new loan is being offered at discounted prices ahead of a debt exchange.
- When
- Creditors had until the end of day Friday to agree to terms on a $2.2 billion debt exchange.
- Where
- N/A
- Why
- The price decline is due to weak sector fundamentals and the ongoing debt exchange.
- Retailer
- Saks Global Enterprises
- Loan Offering Price
- Around 96 cents on the dollar
- Debt Exchange Amount
- $2.2 billion
- Bond Interest Rate
- 11%
- Bond Trading Price Friday
- 23 cents