Refresco sets €1.53 billion equivalent U.S. loan at SOFR plus 425 bps

By Sara Rosenberg

New York, May 4 – Refresco Group BV firmed pricing on its €1.53 billion equivalent U.S. term loan B at SOFR plus 425 basis points, the low end of the SOFR plus 425 bps to 450 bps talk, and revised the 25 bps step-down to at 5.1x first-lien net leverage from at 5.25x first-lien net leverage, according to a market source.

Also, the original issue discount on the U.S. term loan was revised to 99 from talk in the range of 98 to 98.5, the source said.

The U.S. term loan still has a 0.5% floor and amortization of 1% per annum.

Regarding the company’s €1.53 billion euro term loan B, pricing was lowered to Euribor plus 425 bps from Euribor plus 450 bps, the 25 bps step-downs were changed to at 5.1x and 4.6x first-lien net leverage from at 5.5x and 5.25x first-lien net leverage, and the discount finalized at 99, the tight end of revised talk of 98.5 to 99 and tighter than initial talk of 98 to 98.5, the source continued.

As before, the euro term loan has a 0% floor.

Pricing on the company’s €340 million equivalent pound-denominated term loan B remained at Sonia plus 525 bps with a 0% floor, but the 25 bps step-downs were changed to at 5.1x and 4.6x first-lien net leverage from at 5.5x and 5.25x first-lien net leverage, and the original issue discount was set at 98, the wide end of the 98 to 98.5 talk.

All of the term loans (B2/B+) still have 101 soft call protection for six months.

Ticking fees on the term loans are half the margin from days 46 to 75 and the full margin thereafter.

Some changes were also made to documentation.

Goldman Sachs, JPMorgan Chase Bank and KKR Capital Markets are the joint physical bookrunners on the deal, with Goldman left on the U.S. loan and JPMorgan left on the euro and pound loans. Credit Suisse, Natwest, BofA Securities Inc., Morgan Stanley Senior Funding Inc., Mizuho, MUFG, ABN Amro, Credit Agricole, Unicredit, Rabobank, ING, BNP Paribas Securities Corp. and SMBC are joint bookrunners. JPMorgan is the administrative agent.

Recommitments were scheduled to be due at 5 p.m. ET on Wednesday for the U.S. loan, and are due at 5 a.m. ET on Thursday for the euro and pound loans, the source added.

Allocations are expected on Thursday.

Proceeds will be used to help fund KKR’s acquisition of a majority stake in the company. Refresco’s existing investors, PAI Partners and British Columbia Investment Management Corp., will maintain a significant minority position.

Refresco is a Rotterdam, the Netherlands-based beverage producer.

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