Refresco revises loan tranching, cuts spreads on euro and U.S. debt

By Sara Rosenberg

New York, Sept. 26 – Refresco downsized its euro seven-year senior secured term loan B to €1.1 billion from €1.3 billion and added a £200 million term loan B to its capital structure, according to a market source.

Also, pricing on the euro term loan as well as on a $620 million seven-year senior secured term loan B was lowered to Euribor/Libor plus 275 basis points from Euribor/Libor plus 300 bps, the source said.

Additionally, the euro and U.S. term loans now have one 25 bps step-down based on leverage instead of two.

The euro and U.S. term loans still have a 0% floor, an original issue discount of 99.75 and 101 soft call protection for six months.

Price talk on the new sterling term loan is Libor plus 350 bps with a 0% Libor floor and a discount of 99.625, the source continued.

The company’s credit facilities (Ba3/BB-) also include a €200 million six-year multi-currency revolver.

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.

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.

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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