BlueTriton Brands launches $250M add-on term loan; commitments due Dec. 2

A Morgan Stanley-led arranger group has launched the $250 million incremental term loan B for BlueTriton Brands Inc. that will be used to fund a distribution to shareholders, according to sources. Commitments are due by 5 p.m. ET on Dec. 2.

The add-on is offered at an original issue discount of 98.56 and will be fungible with the existing covenant-lite TLB due March 2028 that is priced at L+350 with a 0.5% Libor floor. Existing pricing includes a leverage-based margin step-down of 25 basis points and a step-down of 25 bps upon a qualifying IPO. The 101 soft call protection will be reset for six months on the entire tranche.

At talk, the yield to maturity is 4.34%.

BlueTriton Brands was formerly the North American bottled water business of Nestlé SA, which was acquired in a $4.3 billion deal earlier this year by One Rock Capital Partners and Metropoulos & Co. Financing for the deal included the existing $2.55 billion TLB and $770 million of 6.25% senior unsecured notes due April 2029. In addition, a $350 million asset-based loan facility was put in place.

Current facility ratings are B/B1, with a 3 recovery rating from S&P Global Ratings, and corporate ratings are B/B2. Triton Water Holdings Inc. is the borrower.

Based in Stamford, Conn., BlueTriton Brands' portfolio includes Poland Spring Brand 100% Natural Spring Water, Deer Park Brand 100% Natural Spring Water, Ozarka Brand 100% Natural Spring Water, Ice Mountain Brand 100% Natural Spring Water, Zephyrhills Brand 100% Natural Spring Water and Arrowhead Brand Mountain Spring Water, as well as Pure Life and Splash.