Froneri reveals tranching, talk ahead of New York, London meetings

By Sara Rosenberg

New York, Jan. 14 – Froneri International Ltd. came out with structure and price talk on its first- and second-lien credit facilities ahead of its bank meeting in New York at 10 a.m. ET on Wednesday and bank meeting in London on Thursday, according to a market source.

The facilities consist of a €600 million equivalent multi-currency 6.5-year revolver (B1/B+), a $1.68 billion seven-year covenant-lite first-lien term loan (B1/B+), a €2.3 billion seven-year covenant-lite first-lien term loan (B1/B+), a £415 million seven-year covenant-lite first-lien term loan (B1/B+), a $355 million eight-year covenant-lite second-lien term loan (B3/B-) and a €430 million eight-year covenant-lite second-lien term loan (B3/B-).

The revolver is talked at Euribor plus 275 basis points with a 0% floor.

Price talk on the U.S. first-lien term loan is Libor plus 300 bps with a 0% Libor floor and an original issue discount of 99.5, the euro first-lien term loan is talked at Euribor plus 300 bps to 325 bps with a 0% floor and a discount of 99.5, and the pound sterling first-lien term loan is talked at Libor plus 375 bps to 400 bps with a 0% floor and a discount of 99, the source said.

Price talk on the U.S. second-lien term loan is Libor plus 700 bps with a 0% Libor floor and an original issue discount of 99, and talk on the euro second-lien term loan is Euribor plus 700 bps to 725 bps with a 0% floor and a discount of 99.

The first-lien term loans have 101 soft call protection for six months, and the second-lien term loans have call protection of 102 in year one and 101 in year two, the source continued.

Credit Suisse is the sole U.S. physical bookrunner, and Credit Suisse and Goldman Sachs are the European physical bookrunners. BofA Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC and J.P. Morgan Securities LLC are joint bookrunners. Credit Suisse is the agent.

Commitments are due at noon ET on Jan. 29, the source added.

Proceeds will be used to fund the acquisition of Nestle USA’s ice cream business for $4 billion, to refinance existing debt and for general corporate purposes.

Closing is expected this quarter, subject to customary regulatory approvals.

Froneri, a joint venture between PAI Partners and Nestle, is a U.K.-based ice cream manufacturer.

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