Group of Butchers allocates €320M loan; terms

Group of Butchers has priced its €320 million term loan financing in line with revised terms given Jan. 31 at E+500 with a 0% floor offered at 99. J.P. Morgan led a group as lead-left arranger alongside lead arrangers and bookrunners ABN Amro, ING and Rabobank. Final terms give a yield of 5.28% and compare with guidance at launch of a €330 million term loan at E+425-450 with a 0% floor offered at 99.5. Initial guidance suggested a yield of 4.41%-4.67%. Documents on the transaction were also amended, and sources note the downsize will be funded through €10 million of cash generated since September 2021.

Proceeds from the deal will be used to refinance the group's capital structure, which included €220 million in existing debt and a €10 million vendor loan, and also to support two acquisitions. First-time ratings emerged at B/B2 for both issue and issuer with a 3 recovery rating. Artisan Holdco BV is the borrowing entity, and a €50 million revolver rounded out the debt.

Group of Butchers is 57%-owned by Parcom, with the remainder held by family shareholders, management and other founders. The firm is based in the Netherlands and is a private-label meat producer specializing in sandwich meat and other ready-to-eat products. Among recent acquisitions, the firm acquired German meat products group Die Schnitzelmacher.

Terms: