SiteOne Landscape Supply preps launch of $300M term loan for refinancing

SiteOne Landscape Supply Inc. is preparing to launch a $300 million, seven-year term loan B with a lender call scheduled for 11 a.m. ET on Wednesday, March 10, according to sources. Commitments to the J.P. Morgan-led deal will be due at noon ET on Thursday, March 18.

Proceeds will be used to refinance the company’s existing covenant-lite TLB due October 2024 (L+275, 1% Libor floor). As of Jan. 3, there was $269 million of the TLB outstanding.

On March 9, S&P Global Ratings upgraded SiteOne to BB, from BB-, and raised the rating on the existing first-lien term loan to BB+, from BB, with a stable outlook. The rating agency noted the company’s debt reduction stemming from an equity offering in August 2020: "We believe this substantial deleveraging demonstrates the company’s commitment toward operating at lower target leverage thresholds."

Existing ratings from Moody’s are Ba3 corporate, with a stable outlook, and B1 on the loan.

SiteOne is a national wholesale distributor of landscaping supplies in the U.S. and Canada.