US Foods tightens $900 million term loan B OID to 99.875

By Sara Rosenberg

New York, Nov. 17 – US Foods Inc. revised the original issue discount on its $900 million seven-year incremental senior secured covenant-lite term loan B (B1/BB) to 99.875 from 99.5, according to a market source.

Pricing on the term loan remained at Libor plus 275 basis points with a 0% Libor floor.

The term loan has 101 soft call protection for six months and amortization of 1% per annum.

Security is a first-lien on substantially all of the stock and assets of the borrower and the guarantors, other than ABL priority collateral on which there is a second-lien, provided that no more than 65% of the voting stock of any foreign subsidiary shall be pledged, subject to customary exceptions.

Wells Fargo Securities LLC, Citigroup Global Markets Inc., BofA Securities Inc., KKR Capital Markets, JPMorgan Chase Bank, Truist, Fifth Third, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, BMO Capital Markets, Rabobank, ING and US Bank are the lead arrangers on the deal.

Recommitments were scheduled to be due at 1 p.m. ET on Wednesday, the source added.

Proceeds will be used with about $400 million of cash on hand and $500 million of senior notes to repay an existing term loan due June 27, 2023.

KKR is the sponsor.

US Foods is a Rosemont, Ill.-based foodservice distributor.

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