A J.P. Morgan-led arranger group has tightened pricing on the $2.3 billion term loan B due January 2028 for PetSmart Inc., according to sources. Arrangers are confirming orders until 1 p.m. ET and allocations are expected to follow this afternoon.

Pricing on the seven-year TLB is finalized at L+375, revised from L+400-425, with a 0.75% Libor floor and an issue price of 99. At those terms the yield to maturity is roughly 4.76%. Lenders are offered six months of 101 soft call protection.

Joint lead arrangers on the deal are Apollo, Barclays, Citi, Credit Suisse, Jefferies, MUFG, RBC Capital Markets, UBS and Wells Fargo.

Proceeds from the term loan, along with a $2.35 billion two-part bond offering and about $1.3 billion of equity from the parent company, will be used to refinance the firm's existing term loan, asset-based revolving credit facility, and outstanding notes — including the 5.875% bonds due 2025, the 8.875% bonds due 2025, and the 7.125% notes due 2023.

First-lien ratings are BB-/B1, with a 1 recovery rating from S&P Global Ratings. The unsecured notes are rated CCC+/Caa1 with a 6 recovery rating. Corporate ratings are B/B2, with stable and positive outlooks.

PetSmart, backed by BC Partners, is a specialty retailer of pet products and services in North America.