Canadian retailer Hudson’s Bay Company (HBC) has announced the closing of the previously announced US$500m equity investment by an affiliate of private equity firm Rhône Capital.

The net proceeds from the transaction will be used to repay outstanding borrowings on HBC’s asset-based revolving facility, which will reduce interest expense and strengthen its balance sheet.

Announced in October, the series of transactions will see Rhône buy $500m of convertible shares in HBC, and partner with WeWork to form a joint venture – WeWork Property Advisors – to buy HBC’s Lord & Taylor building in New York for $850m.

HBC to sell Lord & Taylor flagship for US$850m

HBC, Rhône Capital deal moves forward

In connection with the closing of the transaction, HBC has appointed Steven Langman, managing director of Rhône, and Eric Gross, managing partner of WeWork Property Investors, to the board of directors of HBC.

Meanwhile, the retailer has also announced the receipt of a US$75m deposit in connection with the sale of its Lord & Taylor Fifth Avenue building, subject to customary adjustments. The deposit is non-refundable subject to certain limited exceptions.

HBC says it currently expects the sale to close no later than 10 August 2018, subject to the satisfaction of applicable conditions.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.