Wella guides €800M term loan at E+400-425

The €800 million tranche of the $1.8 billion-equivalent term loan B from Wella has been talked at E+400-425 with a 0% floor offered at 99.5, with the deal now out to syndication until Jan. 28.

This price talk suggests a yield to maturity of 4.15%-4.41% on the seven-year covenant-lite facility. The debt carries six months of 101 soft call protection.

Credit Suisse, KKR Capital Markets and J.P. Morgan are physical bookrunners on the euro deal while ABN Amro, BNP Paribas, Credit Agricole CIB, Deutsche Bank, HSBC, ING, Mizuho, TD Securities and UniCredit are bookrunners.

The euro-denominated tranche comes alongside a £550 million sterling tranche priced at S+500 with a 0% floor, that has been pre-placed.

Proceeds will be used to refinance debt and fund a shareholder distribution.

Corporate ratings are B/B2, while issue ratings are B/B2 with an S&P Global Ratings recovery rating of 3. The facility will be issued via Rainbow Finco.

Wella is a leading player in the professional and retail beauty segments, producing hair coloring, hair care, nail polishes and hair appliances to salons and retailers. KKR originally acquired a majority stake from Coty Inc. in 2020, increasing its holding in 2021 as Coty sold an additional 9% stake in a deal valued at about $426.5 million.