Formerly distressed U.S. storage and organization products retailer The Container Store has returned to the U.S. leveraged loan market to reprice and extend a term loan, in a rare turnaround story as the retail sector remains under pressure, Reuters reported. The ecommerce retailer is asking lenders to drop pricing on its $292.5 million term loan to 500 basis point over Libor with a 1 percent floor and extend the maturity by two years to 2023. The loan now pays 700 basis points over Libor and is trading above par in the secondary market. Only two and a half years ago, The Container Store’s term loan was trading at distressed levels at 63 cents on the dollar in February 2016. The company’s performance in the next 12 to 24 months should benefit from an increased focus on custom design and initiatives to grow proprietary products, optimize pricing and reallocate marketing spend to digital channels, said Raya Sokolyanska, a senior analyst at Moody’s Investors Service said.
