Refresco to launch U.S. and euro credit facilities next week

By Sara Rosenberg

New York, Sept. 5 – Refresco is scheduled to hold a bank meeting in London on Monday and in New York on Sept. 12 to launch its credit facilities (Ba3/BB-), according to a market source.

J.P. Morgan is the global coordinator on the credit facilities and a mandated lead arranger with ABN Amro Bank, BNP Paribas Fortis SA/NV, Rabobank, Commerzbank, HSBC, MUFG, Mizuho and Societe Generale.

The facilities consist of a €200 million six-year multi-currency revolver, a $620 million seven-year senior secured term loan B and a €1.3 billion seven-year senior secured term loan B.

Talk on the term loans is Libor/Euribor plus 300 basis points with a 0% floor and an original issue discount of 99.75, the source said.

Included in the term loans is 101 soft call protection for six months.

Commitments are due on Sept. 26, the source added.

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 fourth quarter, subject to customary conditions including regulatory approvals.

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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