Michaels Stores, Inc.’s $500 Million Senior Notes Offering


Simpson Thacher represented the initial purchasers, led by BofA Securities, Inc., in connection with the offering of $500 million aggregate principal amount of 8% Senior Notes due 2027 by Michaels Stores, Inc. (“Michaels”).

The net proceeds of the offering, with cash on hand, will be used to redeem Michaels’s outstanding 5.875% Senior Subordinated Notes due 2020.

Michaels is the largest arts and crafts specialty retailer in North America, based on store count, providing materials, project ideas and education for creative activities.

BofA Securities, Inc., Barclays Capital Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, BB&T Capital Markets, SunTrust Robinson Humphrey, Inc. and UBS Securities LLC acted as initial purchaser on the deal.

The Simpson Thacher team included Mark Brod (Picture), John Ericson, Sean Dougherty, Adam Kahan and Chia-Chen Lee (Capital Markets); Michael Isby and Timothy Mulvihill (Environmental); Jamin Koslowe and Caitlin Grimes (Executive Compensation and Employee Benefits); Jonathan Cantor and Sarah Katz (Tax); Marcela Robledo and Corina McIntyre (IP); and Andrew Pagliughi (FINRA). Summer Associates Martina Tiku and Daniel Westen also provided valuable assistance.

Involved fees earner: Sean Dougherty – Shearman & Sterling; Mark Brod – Simpson Thacher & Bartlett; Jonathan Cantor – Simpson Thacher & Bartlett; John Ericson – Simpson Thacher & Bartlett; Caitlin Grimes – Simpson Thacher & Bartlett; Michael Isby – Simpson Thacher & Bartlett; Adam Kahan – Simpson Thacher & Bartlett; Sarah Katz – Simpson Thacher & Bartlett; Jamin Koslowe – Simpson Thacher & Bartlett; Chia-Chen Lee – Simpson Thacher & Bartlett; Corina McIntyre – Simpson Thacher & Bartlett; Timothy Mulvihill – Simpson Thacher & Bartlett; Andrew Pagliughi – Simpson Thacher & Bartlett; Marcela Robledo – Simpson Thacher & Bartlett; Martina Tiku – Simpson Thacher & Bartlett; Daniel Westen – Simpson Thacher & Bartlett;

Law Firms: Shearman & Sterling; Simpson Thacher & Bartlett;

Clients: Bank of America Securities; Barclays Capital ; BB&T Capital Markets; Goldman Sachs & Co.; J.P. Morgan Securities LLC; Morgan Stanley; SunTrust Robinson Humphrey, Inc.; UBS Securities LLC; Wells Fargo Securities;