Michaels Cos., backed by Apollo Global Management, is seeking to raise approximately $4.85 billion in debt to refinance its capital structure, according to people familiar with the matter. The arts-and-crafts retailer is capitalizing on the recent bond market rally to restructure its obligations and potentially improve its financial position. This move comes as borrowing costs have eased, giving companies like Michaels an opportunity to refinance at more favorable terms.

The $4.85 billion debt raise represents a significant portion of Michaels' capital structure and could help extend maturities or reduce interest expenses. The company's decision to refinance comes amid improving conditions in the high-yield bond market, where investors have shown increased appetite for corporate debt. Michaels has been working to strengthen its balance sheet following challenges during the pandemic and subsequent economic uncertainty.

This refinancing effort underscores how companies are taking advantage of the current market environment to optimize their debt profiles. For Michaels, the timing appears strategic as it seeks to position itself for future growth while managing its substantial debt load. The successful execution of this refinancing could provide the company with greater financial flexibility and potentially lower its cost of capital.