Orrick Advises Gap on $2.25 Billion Notes Offering and $1.8 Billion ABL Credit Facility

Orrick has advised global retailer Gap Inc. on a $2.25 billion offering of senior secured notes –$500 million of 8.375% notes due 2023, $750 million of 8.625% notes due 2025 and $1 billion of 8.875% notes due 2027 and a new a $1.868 billion asset-based revolving credit facility.

A portion of the proceeds of the notes were used to redeem a previously issued $1.25 billion unsecured notes due April 2021 and to refinance all outstanding amounts under Gap’s existing $500 million, five-year, unsecured revolving credit facility, which was scheduled to expire in May 2023. This new capital structure will set the company up to navigate the current economic crisis well. The offering closed on May 7.

The Orrick team advising Gap was led by Brett Cooper and Dolph Hellman, and included Bill Haft, Lynne Hirata, Kenneth Marx, Kelly Mink, Kelsey Kummer, Stephanie Hsu, Chris Chavez, Mark Nguyen, James Larkin, Steven Malvey and Thomas Mitchell.