Ares to Lead $800M Private Credit Deal to Refinance Palladium-Owned Quirch Foods’ BSL Debt

Ares is leading an $800 million private credit debt package for Palladium-owned food distributor Quirch Foods to refinance its existing broadly syndicated loan debt, according to sources.

Quirch’s deal consists of a $725 million term loan and a $75 million delayed-draw term loan with pricing at SOFR+650 bps and 98 to 98.5 OID, sources said. The delayed-draw term loan facility will be used to make future acquisitions, according to a source close to the deal.

Silver Point Capital is a lender in the deal as well, sources said. Quirch’s refinancing is expected to close as soon as next week, sources added.

Proceeds from the deal will refinance the Florida-based food distributor’s existing debt, consisting of a SOFR+450 bps 2027 term loan B, according to Solve. The loan, issued in 2021 by lead RBC, was last trading in the secondary today at 99/100.

Quirch’s refinancing comes as dealmakers increasingly opt to finance deals with private credit instead of in the broadly syndicated market because of recent unease in the primary.

Examples include Energos’ $2 billion bond and loan, both earmarked to refinance debt, which were recently paused, Octus reported, after it struggled to gain investor attention. Meanwhile, bidders looking to acquire Apollo-backed Heritage Grocers are looking to finance the deal with private credit, Octus reported, as banks are hesitant to fund the deal because of the grocery sector’s negative headwinds.

Palladium acquired Quirch, which specializes in “Hispanic food products,” in 2018, according to a press release. Terms of the deal were not disclosed.

In 2023, Quirch explored a potential sale that could have valued it at about $1.5 billion, including debt, according to third-party press reports. At the time, the company was working with Goldman Sachs on a potential sale, according to the report.

Quirch has existing first lien debt maturing in 2027 priced at SOFR+475 bps with business development company creditor Great Elm Capital, according to Octus’ BDC Database. A list of its existing CLO lenders can be found HERE. A list of the top 10 holders of the company’s term loan is below:
 

Moody’s Ratings and S&P Global Ratings hold Caa1/B- ratings on Quirch, and both ratings agencies downgraded the company one notch this year.

S&P said in a September rating note that Quirch reported “elevated leverage and negative free operating cash flow (FOCF) through its third quarter ended June 30, 2025, largely due to flat margins and higher-than-expected revolver borrowings amid the expansion of its geographic footprint.” The ratings agency forecasts its leverage to remain elevated near “7x through fiscal 2025 (ending September 2025), with modest improvement in fiscal 2026 to mid-6x, which is above our previous downgrade trigger,” it said.

Ares, Palladium and Silver Point declined to comment. Quirch Foods did not respond to a request for comment.