Heritage Grocers revises $460 million add-on term loan OID to 97.5

By Sara Rosenberg

New York, June 22 – Heritage Grocers Group tightened the original issue discount on its fungible $460 million add-on term loan B (B2/B) due Aug. 1, 2029 to 97.5 from 97, according to a market source.

Also, the company added 101 soft call protection for six months that will start on Aug. 1 when the existing 101 hard call protection expires, the source said.

Pricing on the add-on term loan is SOFR+10 basis points CSA plus 675 bps with a 0.75% floor, in line with pricing on the company’s existing $432 million term loan B due Aug. 1, 2029.

RBC Capital Markets, Wells Fargo Securities LLC, Rabobank, Natixis, BMO Capital Markets, Deutsche Bank Securities Inc., Jefferies LLC and Nomura are the joint lead arrangers on the deal.

Commitments continued to be due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used to help fund the acquisition of El Rancho Supermercado, an Addison, Tex.-based Hispanic-focused specialty grocer.

Heritage Grocers is an Ontario, Calif.-based Hispanic-focused specialty grocer that was formed through the merger of Tony’s Fresh Market and Cardenas Market.

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