Flora Food lifts U.S. term loan to $875 million, lowers pricing

By Sara Rosenberg

New York, March 6 – Flora Food Group (currently Unilever’s spreads business) upsized its U.S. dollar seven-year covenant-light first-lien term loan to $875 million from €600 million equivalent and reduced pricing to Libor plus 300 basis points from Libor plus 325 bps, according to a market source.

In addition, the original issue discount on the U.S. term loan was tightened to 99.875 from 99.5, the source said.

The U.S. dollar first-lien term loan still has a 0% Libor floor.

The company’s credit facilities (B1/B+/BB-) also include a €700 million 6.5-year revolver priced at Euribor plus 300 bps with a 0% floor, a €2 billion seven-year covenant-light first-lien term loan, a PLN 2 billion seven-year covenant-light first-lien term loan and a £700 million seven-year covenant-light first-lien term loan.

At launch, the Polish zloty term loan was described as €500 million equivalent and the pound sterling term loan was described as €800 million equivalent.

Pricing on the euro term loan is still Euribor plus 350 bps with a 0% floor and a discount of 99.5, pricing on the Polish zloty term loan remained at W plus 350 bps with a 0% floor and a discount of 99.5 and pricing on the pound sterling term loan remained at Libor plus 400 bps with a 0% floor and a discount of 99.5.

Credit Suisse, Deutsche Bank and KKR are the physical bookrunners on the deal. Bookrunners on the deal are BNP Paribas, Credit Agricole, Goldman Sachs, HSBC, ING, Lloyds, Mizuho, RBC, Societe Generale and UniCredit. Mandated lead arrangers include Commerzbank, mBank, Mediobanca, Rabobank and Raiffeisen.

Recommitments were scheduled to be due at 5 p.m. ET on Tuesday for the U.S. tranche and at noon GMT on Wednesday for the other tranches.

Proceeds will be used to help fund the acquisition of Unilever’s spreads business by KKR for €6,825,000,000 on a cash-free, debt-free basis and to refinance existing debt.

The net proceeds from the U.S. term loan upsizing will reduce the senior unsecured bridge facility, the source added.

Closing is expected by mid-year, subject to certain regulatory approvals and employee consultation in certain jurisdictions.

Flora Food is a butter and margarine company.

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