Goldman Plans Petco Loan Refinancing Amid Financial Uplift

A person strolls with a dog outside a Petco location in New York's Upper West Side.

Goldman Sachs is in the process of evaluating investor enthusiasm for a financial package designed to refinance Petco Health & Wellness Company's substantial $1.6 billion loan. This move coincides with a reported strengthening of Petco's financial outlook, as noted by insider sources.

The investment bank has been proactively seeking opinions from investors regarding how the refinancing should be structured and what the pricing should be. This input remains confidential, as indicated by insiders privy to the discussions. Preliminary talks include possible offerings of bonds with interest rates ranging from 8% to 9%, along with a term loan component approximately 4.25 percentage points higher than the benchmark rate. Additionally, it is suggested that these securities might be released at a modest discount.