The Saks-Neiman Merger

The Saks/Neiman deal is a clean case study in synergies vs. leverage. Per the first-day declaration (Case 26-90103, S.D. Tex.):
- Run-rate synergies ~$300M/yr vs. $150M underwritten
- Interest ~$130M (Jun '25) + ~$126M (Dec '25), so ~$256M/yr
- FY revenue -13.6%, FOCF deficit -$410M, ~$3.4B funded debt at filing
- Largest unsecured creditor: Chanel, $135M+
The merger worked on its own terms; the capital structure didn't leave room for inventory. Disclosure: I made a short documentary on it, posted it on youtube @thefinalfiling. My coworkers found it interesting.