September 5, 2017 / 10:41 AM / 10 months ago

LPC-Refresco launches €2bn-equiv buyout loan

LONDON, Sept 5 (Reuters) - A €2bn-equivalent loan backing Netherlands-based drinks bottler Refresco’s acquisition of the bottling activities of Canada-based Cott Corp has launched for syndication, banking sources said.

Refresco said in July it would acquire Cott’s bottling facilities for US$1.25bn, giving a big boost to its business in the US.

JP Morgan is leading the deal, alongside bookrunners ABN Amro, BNP Paribas and Rabobank.

Prior to launch Commerzbank, HSBC, MUFG, Mizuho and Societe Generale joined as mandated lead arrangers.

The financing comprises a €1.3bn seven-year term loan B and a US$620m seven-year term loan B. Both are guided to pay 300bp over Euribor/Libor, with a 0% floor at 99.75 OID. They are offered with 101 soft-call for six months.

There is also a €200m six-year multi-currency revolving credit facility.

Bank meetings are due to take place in London on September 11 and New York on September 12, to show the deal to lenders, which will be asked to commit to the financing by September 26.

Corporate and facility ratings are Ba3/BB-. There is a recovery rating of 3.

This is the second jumbo loan out of the blocks this week, as well as the second public-to-private financing after a €2.35bn loan backing private equity groups Bain Capital and Cinven’s buyout of German generic drugmaker Stada launched on Monday.

Public-to-privates have been a popular feature in the leveraged finance market of late.

Around €1bn of term loans that form part of a wider US$7.75bn-equivalent buyout financing backing US life sciences company Avantor’s take-private of lab supplies company VWR Corp are expected to launch imminently, while a US$2.59bn-equivalent loan backing Blackstone and CVC’s buyout of UK payment processing company Paysafe is also due to launch shortly.

Cott will add 29 production sites to Refresco’s network, with 19 in the United States, four in Canada, one in Mexico and five in Britain. (Editing by Christopher Mangham)

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