Banks Start Pitching $4.25 Billion in Debt for Boots Buyout (1)

Wall Street banks including JPMorgan Chase & Co. and UBS Group AG have begun early pricing discussions with investors for a $4.25 billion debt package to help finance Sycamore Partners’ buyout of UK pharmacy Boots, according to people familiar with the matter.

The package is now being pre-marketed in multiple parts, as Bloomberg News previously reported: $2.25 billion in term loans and $2 billion in secured bonds, across different denominations.

Bankers are pitching a $750 million term loan at 400 to 425 basis points over the Secured Overnight Financing Rate and a discounted price of 99 cents on ...