NEW YORK, United States — Neiman Marcus Group Inc. is seeking $3.75 billion in loans to back its buyout by Ares Management LLC and the Canada Pension Plan Investment Board, while Hudson's Bay Co. increased the size of the bank debt it's seeking to purchase Saks Inc.

Neiman Marcus, the Dallas-based upscale retailer, is seeking a $2.95 billion term loan and an $800 million asset- backed loan, according to a person with knowledge of the deal, who asked not to be identified because the financing is private.

Hudson’s Bay, Canada’s biggest department-store operator, increased the size of the loans it’s seeking to buy New York- based luxury retailer Saks to $2.3 billion from $1.9 billion, according to a person with knowledge of the transaction, who asked not to be identified because the terms aren’t set.

A $2 billion, seven-year term loan may now pay interest of as much as 4 percentage points more than the London interbank offered rate, up from an initially proposed range of 3.25 percentage points to 3.5 percentage points more than Libor, the person said. The Toronto-based company, Canada’s oldest, added a $300 million second-lien term portion that expires in eight years.

The average price on the largest first-lien loans climbed 0.03 cent to 97.49 cents on the dollar today, according to the Standard & Poor’s/LSTA U.S. Leveraged Loan 100 index. Floating- rate debt has returned 3.6 percent this year, outpacing the 3.3 percent gains on the Bloomberg USD High Yield Corporate Bond Index.

Big Deal

The Neiman Marcus deal was the largest of 666 private- equity backed buyouts valued at $60 billion, announced last quarter, according to research firm Preqin Ltd. Ares and the pension fund are buying the retailer for $6 billion from TPG Capital and Warburg Pincus LLC, which acquired it for about $5 billion in a 2005 leveraged buyout. Last month, the company obtained $1.56 billion in bridge facilities as part of the financing.

RadioShack Corp., the consumer-electronics seller that lost $139.4 million last year, plans to raise funds by the end of 2013 to persuade suppliers to support its turnaround effort, according to people with knowledge of the matter, who asked not to be identified because the company’s financing negotiations are private. The retailer would seek to raise the cash through debt financing, said one of the people.

By Sridhai Natarajan, Jeannine Amodeo, Krista Giovacco, Chris Burritt; Editors: Faris Khan, Chapin Wright, Shannon D. Harrington