J. Crew searching for 1.57 billion dollar loan to refinance debt

J. Crew Group Inc., US based fashion retailer is searching for a 1.57 billion

dollar or 940 million pound loan to refinance its debt.

Last week the Group, owned by Leonard Green & Partners LP and TPG Capital, suggested paying three percentage points more than the London interbank offered rate, reported inside source familiar with the transaction to Bloomberg. The New-York based fashion retailer hired Bank of America Corp. and Goldman Sachs Group Inc, to organize the financing, which will lack financial maintenance provisions that will protect investors.

J. Crew revealed unaudited financial results in connection with a potential refinancing of certain of its existing indebtedness, predicting revenues increased 9 percent to 2,428 million dollars for the fiscal year ended Feb 1. Adjusted EBITDA is estimates to be within a range of 369 million dollars and 371 million dollars compared to 360 million dollars last year, according to the investor filing.

If J. Crew secures 1.57 billion dollars loan, the Group plans to use a percentage of the loan from the financing to re-coup its 8.125 percent senior unsecured noted due 2019, according to the regulatory filing.