Private equity firm Sycamore Partners is in talks to purchase apparel retailer Chico's FAS Inc and is trying to secure debt financing for a deal that could reach $3 billion, according to two people familiar with the matter.Sycamore has an in-principle agreement to acquire the company subject to securing financing, one of the people said. Some banks, however, have been reluctant to meet Sycamore's demands for a lot of debt to increase returns on the deal, both the sources added.Chico's shares were up 10 percent in extended trading on Tuesday after the Wall Street Journal first reported the potential deal.The sources asked not to be identified because the talks are confidential. Sycamore declined to comment. Chico's FAS was not immediately available for comment.
Chico?s FAS, Inc. is a specialty retailer of private branded, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing gift items under the Chico?s, White House / Black Market (WH/BM) and Soma Intimates (Soma) brand names. Shares of CHS fell by 0.58% or $-0.1/share to $17.25. In the past year, the shares have traded as low as $14.39 and as high as $18.20. On average, 1944640 shares of CHS exchange hands on a given day and today's volume is recorded at 3169063.
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