San Diego-based PETCO is in the market to raise about $1.7 billion, which includes a $1.1 billion term loan and $625 million in junior debt, according to Thomson Reuters Loan Pricing Corp.
Proceeds will be used to pay a dividend to sponsors Leonard Green and TPG, LPC said. Credit Suisse is leading the sale of the term loan, LPC said.
PETCO becomes the latest PE-backed company looking to pay dividends to its shareholders. Dunkin’ Brands last week said it was raising about $2 billion—via a $1.35 billion loan and $625 million in notes—to fund a dividend to its shareholders, which include Bain Capital, the Carlyle Group and THL Partners. Getty Images, which is owned by Hellman & Friedman, is also in the market for a $1.27 billion loan to partly fund a special dividend of $495 million to its shareholders, LPC said.
In 2000, TPG and Leonard Green acquired PETCO in a $600 million deal. TPG and Leonard Green reportedly invested about $200 million in the acquisition.
It was not clear how big the PETCO dividend will be. A TPG spokesman declined comment. Officials for Leonard Green and PETCO couldn’t be reached for comment.