JPMorgan readies $6.5 billion Skechers debt sale for next week
JPMorgan Chase & Co. plans to kick off a $6.5 billion debt offering to support private equity firm 3G Capital's purchase of footwear maker Skechers as soon as next week, according to a person with knowledge of the matter.
The financing is expected to include $4 billion of secured debt and $2.5 billion of unsecured debt, the latter of which would allow for a 'payment-in-kind' feature with a toggle option, Bloomberg previously reported. The PIK component means the borrower can choose whether to pay interest in cash or by issuing more debt.
It's not clear if next week's offering will include all or some of that debt package, said the person, who was not authorized to discuss the transaction publicly.
A JPMorgan representative declined to comment. Representatives for 3G Capital and Skechers didn't immediately respond to requests for comment.
Risky debt offerings have rebounded in the past few weeks as markets stabilized from tariff-induced volatility. Deals that have launched have been mostly well-received by investors. The Skechers deal had been expected to launch after the May 26 Memorial Day holiday.
3G Capital expects its $9.4 billion Skechers buyout, which also includes an equity component, to close during the third quarter, according to a company statement.
Founded in the early 1990s and based in Manhattan Beach, California, Skechers is now the third-largest global sports footwear retailer. It has nearly doubled revenue over the past five years, and is on the path to reach $10 billion in sales by 2026, according to Abigail Gilmartin, Bloomberg Intelligence's retail analyst, in a report last month.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Network
a day ago
- Fashion Network
Skechers names Kartik Aaryan as India brand ambassador
Skechers has announced the appointment of Bollywood actor Kartik Aaryan as its new brand ambassador for India. In his new role, Aaryan will front the brand's latest campaign for 'Skechers Hands Free Slip-ins,' a footwear line designed for hands-free wear. 'Kartik Aaryan embodies the spirit of Skechers- bold, versatile, stylish and innovative,' said Skechers South Asia Pvt Ltd's chief executive officer Rahul Vira in a press release. 'As a prominent contemporary youth icon, his broad appeal and dynamic persona will help keep Skechers in the mind of consumers shopping for our in-demand lifestyle and athletic footwear across India.' The announcement marks Skechers' continued focus on youth-centric positioning and innovation-led marketing in India. The brand said the partnership aims to strengthen its connection with younger consumers seeking comfort-driven lifestyle and performance footwear. 'What truly impressed me is their relentless focus on innovation, especially the Slip-ins technology, which redefines convenience without compromising on design," said Aaryan. "I'm always on the move, so I love that I can just slip in and go.' The Skechers Hands Free Slip-ins collection features the brand's patented Heel Pillow technology and is available at select retail outlets and online. Aaryan joins a growing Skechers India roster, including Ananya Panday and athletes from cricket, football, basketball, and pickleball.
Fashion Network
a day ago
- Fashion Network
China's 618 shopping festival sees slower momentum despite extended run
China's retail sector continues to struggle amid concerns over job stability, stagnant wage growth and the ongoing property crisis, leaving shoppers hesitant to splurge. Retailers and the government have attempted to revive muted consumer spending through deeper discounts and broader consumer subsidies. Although extending the sales period may support overall sales growth during this year's 618 period, analysts say that prolonged festivals and year-round promotions on e-commerce platforms have diminished enthusiasm for these events. "I don't have anything special to buy during the 618 shopping festival. Because there are always great deals, I can buy whatever I need whenever," said Xu Binqi, who works in Beijing's film industry. "Take skincare products, for example—I buy them whenever I run out, and the prices are no higher than during the 618 festival." Rachel Lee, general manager of market research firm Worldpanel China and co-author of Bain & Co.'s recent China Shopper Report, said that when consumers are budget-conscious, they opt for more affordable alternatives, making discounts less of a factor. "Standalone promotional discounts will find it increasingly difficult to drive volume growth," she said. Major e-commerce platforms have not disclosed overall sales figures for 618 in recent years. However, according to data provider Syntun, sales during the mid-year festival last year declined for the first time in 2024, down 7% to 742.8 billion yuan ($103.31 billion) compared to the previous year. This year, reported that the number of users placing orders during the 618 event more than doubled compared to the previous year, totaling over 2.2 billion orders across its online, offline and food delivery platforms. Alibaba stated that 453 brands surpassed 100 million yuan ($13.91 million) in gross merchandise volume (GMV) over the 618 period. Brands that exceeded 1 billion yuan in GMV included Apple, Xiaomi, Huawei, Nike, Adidas, L'Oréal and Lululemon, Alibaba added. GMV is a metric used by e-commerce companies that is roughly analogous to sales revenue.
Fashion Network
a day ago
- Fashion Network
China's 618 shopping festival sees slower momentum despite extended run
China's retail sector continues to struggle amid concerns over job stability, stagnant wage growth and the ongoing property crisis, leaving shoppers hesitant to splurge. Retailers and the government have attempted to revive muted consumer spending through deeper discounts and broader consumer subsidies. Although extending the sales period may support overall sales growth during this year's 618 period, analysts say that prolonged festivals and year-round promotions on e-commerce platforms have diminished enthusiasm for these events. "I don't have anything special to buy during the 618 shopping festival. Because there are always great deals, I can buy whatever I need whenever," said Xu Binqi, who works in Beijing's film industry. "Take skincare products, for example—I buy them whenever I run out, and the prices are no higher than during the 618 festival." Rachel Lee, general manager of market research firm Worldpanel China and co-author of Bain & Co.'s recent China Shopper Report, said that when consumers are budget-conscious, they opt for more affordable alternatives, making discounts less of a factor. "Standalone promotional discounts will find it increasingly difficult to drive volume growth," she said. Major e-commerce platforms have not disclosed overall sales figures for 618 in recent years. However, according to data provider Syntun, sales during the mid-year festival last year declined for the first time in 2024, down 7% to 742.8 billion yuan ($103.31 billion) compared to the previous year. This year, reported that the number of users placing orders during the 618 event more than doubled compared to the previous year, totaling over 2.2 billion orders across its online, offline and food delivery platforms. Alibaba stated that 453 brands surpassed 100 million yuan ($13.91 million) in gross merchandise volume (GMV) over the 618 period. Brands that exceeded 1 billion yuan in GMV included Apple, Xiaomi, Huawei, Nike, Adidas, L'Oréal and Lululemon, Alibaba added. GMV is a metric used by e-commerce companies that is roughly analogous to sales revenue.
