Saks Global launched an exchange offer for its 11% SSNs due 2029 as part of the second phase of its LME, with holders of approximately 92% the existing $2.2bn in secured notes having already consented to the transaction.

The announcement discloses five tiers of participation, in line with what 9fin reported last week:

• The in-group, defined as “Pre-Funded”, are exchanging at par, and get 11 cents in 11% effectively first-out SPV asset based notes due 2029 issued by SGUS; and 89 cents in 11% second out notes due 2029 issued by Saks Global.
• The next tier, the “Other Commitment Parties,” will also be participating in the new money and will be allowed to exchange at 80 cents on the dollar comprising 5 points of SPV, 50 of second-out and 25 points of 11% third-out notes due 2029.
• The third tier participating in new money, or the “New Money Participants,” will also get 80 cents on the dollar, but the consideration will comprise 55 cents of second-out and 25 points of third-out notes.
• Others not participating in the new money, or the “Non-New Money Participants”, will get just 70 cents of consideration, split 20 cents of second-out and 55 of third-out notes.
• There is a last group — the “Third-Out Only Participants” — being offered just 75 cents on the dollar of third outs.

The late exchange consideration for each group will be 15 cents in second-out notes and 55 cents in third-out notes.

New money participants will get to purchase their pro rata portions of $600m in 11% SPV asset based notes due 2029.

The early exchange deadline is 5pm ET on 1 August, while the exchange expires on 18 August.

Last week, 9fin reported that the second phase of the transaction was underway with three different creditor groups pitted against each other, comprising a Glenn Agre and Greenhill group, Benefit Street represented by Gibson Dunn, and Abrams Capital.

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