Tue 05/04/2021 17:24 PM
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Blue Ribbon LLC, via lead arranger JPMorgan, is expected to allocate its $368 million seven-year refinancing loan today after substantially flexing terms following investor pushback, according to sources. Price talk on the facility was widened to L+575-600 bps from L+500 bps at launch, the OID was improved to 97.5 from 98.55-99, and the call protection is now at par for the first year, down from 106%, the sources noted. The LIBOR floor remains unchanged at 0.75%. Continue reading as our Americas Middle Market team analyzes the Blue Ribbon refinancing situation and Request a Trial for access to our coverage of thousands of other stressed/distressed debt situations as well as access to the linked documents throughout this article.

The commitment deadline was initially set for April 29 but was pushed out to today after lackluster investor responses to the transaction, the sources said. Lenders that were not supportive in the brewer’s recent amendment process were not included in the current loan syndication, and that did not help the process, they added.

Alongside pricing changes to Blue Ribbon’s new loan, the security package has also been enhanced to include support from the company’s equity interest in the Irwindale Brewery. Terms also provide the ability to carve out the asset should Blue Ribbon hit a certain leverage target, the sources said.

Blue Ribbon’s new $368 million loan will take out the company’s existing $368 million term loan B, set to mature in November this year, and it follows a $90 million loan repayment in early April.

JPMorgan declined to comment, and Blue Ribbon Partners did not immediately respond to an email request for comment.

--Adelene Lee, Ellen Schneider
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