12:15 PM EDT, 05/13/2024 (MT Newswires) -- Morgan Stanley ( MS ) is leading banks on Staples' $1.8 billion leveraged loan sale and the call for the transaction is slated for Tuesday, Bloomberg reported Monday, citing a person familiar with the matter.

Proceeds from the loan sale and $2.35 billion of secured debt will be used to refinance other borrowings, the person reportedly said.

Loan interest could be 525 basis points over the secured overnight financing rate and will be sold at $0.98 to $0.985 on the dollar, yielding at least 10.5%, the person was quoted as saying.

Neither Morgan Stanley ( MS ) nor Staples immediately responded to MT Newswires' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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