Arterra Wines reworks U.S. and Canadian term loan sizes, pricing

By Sara Rosenberg

New York, Nov. 18 – Arterra Wines Canada Inc. downsized its U.S. seven-year covenant-lite first-lien term loan to $455 million (C$596 million equivalent) from C$660 million U.S. dollar equivalent and upsized its Canadian seven-year covenant-lite first-lien term loan to C$118 million from C$50 million, according to a market source.

Also, pricing on the U.S. term loan was lowered to Libor plus 350 basis points from Libor plus 400 bps and pricing on the Canadian term loan was reduced to Bankers Acceptance rate plus 375 bps from BA plus 425 bps, the source said.

In addition, the original issue discount on the U.S. term loan was tightened to 99.25 from 99.

As before, both term loans have a 0.75% floor and 101 soft call protection for six months, and the Canadian term loan has an original issue discount of 99.

Credit Suisse Securities (USA) LLC, BMO Capital Markets, RBC Capital Markets and Antares Capital are the lead arrangers on the term loans (B1/B).

Recommitments were scheduled to be due at 5 p.m. ET on Wednesday, the source added.

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

Arterra Wines is a Mississauga, Ont.-based owner and distributor of wine.

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