Daily News: September 5, 2017

J.P. Morgan Leads Financing to Support Refresco Cott Buy


Netherlands-based bottler Refresco will acquire Cott’s bottling for $1.25 billion. JPMorgan is led the financing to support the transaction.

Cott’s bottling activities are comprised of a leading beverage platform with a full portfolio of non-alcoholic beverages, focused on retailer brands and contract manufacturing. The acquisition will create the largest independent bottler for retailers and A-brands in Europe and North America with a combined production volume of approximately 12 billion liters.

Refresco will finance the acquisition with debt, for which it has fully underwritten facilities, and intends to bring down leverage over time. According to Reuters, J.P. Morgan led 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.

According to Reuters, the financing comprises a €1.3 billion ($1.55 billion) seven-year term loan B and a $620 million 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 €200 million ($238 million) six-year multi-currency revolving credit facility.