Arterra Wines launches $130 million incremental term loan at 99.5 OID

By Sara Rosenberg

New York, April 30 – Arterra Wines Canada Inc. launched on Monday its fungible $130 million incremental senior secured covenant-light term loan B-1 (B1/B) due Dec 15, 2023 with price talk of Libor plus 275 basis points with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The incremental term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Morgan Stanley Senior Funding Inc. is the lead bank on the deal.

Commitments are due at noon ET on May 7, the source added.

Proceeds will be used to refinance existing second-lien debt and fund cash to the balance sheet for general corporate purposes.

Arterra, formerly known as Constellation Brands Canada, is a Mississauga, Ont.-based producer and distributor of wine brands.

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