PetSmart Selling Its Stake in Chewy | Industry NewsPetSmart Selling Its Stake in Chewy | Industry News

In a press release issued on Oct. 26, PetSmart announced a recapitalization plan that includes selling off all of the company’s shares of Chewy common stock. 

According to a report from Bloomberg, those shares of Chewy common stock will be distributed to a group led by private equity firm BC Partners, the private equity firm that is the principal owner of the big-box chain.

The press release from PetSmart details a broader recapitalization plan that includes the issuing of about $4.65 billion in new debt and $1.3 billion in equity contributions from its parent company “to fund the early redemption, repurchase or repayment in full of outstanding debt under PetSmart’s existing term loan and PetSmart’s existing notes…”

The result of the recapitalization plan, says Bloomberg, “will result in a smaller debt load relative to earnings as well as longer maturities for PetSmart…”

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