Primary: Upfield

Dutch vegetable spread manufacturer Upfield has repriced its term loan B, shaving 50 bps off the margins of the euro, dollar and sterling tranches, sources said.

As a result, pricing went to Euribor + 450 bps from E+500 bps on the €2.653 billion TLB6, to SOFR + 425 bps from S+475 bps on the $1.308 billion TLB7 and to SONIA + 525 bps from S+575 bps on the £487 million TLB8. All tranches priced at par with a 0% floor.

Upfield justified the repricing on the basis that B1 rated deals in primary were currently getting done at E+ 375 bps margins, and that the company’s earnings have started recovering.

However, the deal had faced some pushback given that Upfield extended the loans via an amend-and-extend transaction only late last year, and because some of the tranches were trading marginally below par when the repricing launched, and barely got over the line, sources said.

KKR Capital Markets was sole physical bookrunner, while BNP Paribas, Citi, Goldman Sachs, HSBC, ING, Mizuho, Rabo, RBC Capital Markets, Societe Generale, UniCredit, CA-CIB, SMBC were joint bookrunners.

Upfield capital structure as of March 31: