Refresco plans U.S. and euro bank debt for acquisition and refinancing

By Sara Rosenberg

New York, Aug. 2 – Refresco received a commitment for a $620 million seven-year senior secured term loan B, a €1.3 billion seven-year senior secured term loan B and a €200 million six-year multi-currency revolving credit facility, according to a company presentation.

J.P. Morgan is the global coordinator on the credit facilities (BB-), and a mandated lead arranger and joint bookrunner with ABN Amro Bank, BNP Paribas Fortis SA/NV and Rabobank.

Proceeds will be used to fund the acquisition of the bottling activities of Cott for $1.25 billion and to refinance existing debt at both companies.

Upon completion, leverage is expected at around 4.5 times adjusted EBITDA, but the company plans to bring that down to around 3.5 times within two years.

Closing is expected in the second half of this year, subject to customary conditions including regulatory approvals, Refresco’s shareholder approval and the absence of material adverse changes.

Refresco is a Rotterdam, the Netherlands-based bottler of beverages for retailers and A-brands in Europe and the United States.

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