Nomad Foods launches $825 million term loan B at SOFR plus 425 bps

By Sara Rosenberg

New York, Oct. 31 – Nomad Foods was scheduled to hold a lender call at 10 a.m. ET on Monday to launch an $825 million seven-year senior secured covenant-lite term loan B that is talked at SOFR plus 425 basis points with a 0.5% floor and an original issue discount of 95 to 96, according to a market source.

Included in the term loan is 101 soft call protection for six months and amortization of 1% per annum, the source said.

The term loan has customary non-financial covenants, such as limitation on debt, limitation on restricted payments, limitation on liens and limitation on disposals.

The senior secured obligations of the company will rank pari passu with all present and future senior secured debt.

Expected term loan ratings are B1/BB-/BB+.

Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are the joint lead arrangers on the deal. Deutsche Bank Securities Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank and Jefferies LLC are joint passive leads. Credit Suisse is the administrative agent.

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

Proceeds will be used to help refinance an existing $907 million U.S. term loan B due 2024, for general corporate purposes and to pay transaction expenses.

Closing is expected on Nov. 10.

Nomad Foods is a U.K.-based frozen foods company.

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