Banks launch debt tied to Walmart supplier deal
Banks including Royal Bank of Canada launched a seven-year, US$1.25 billion term loan tied to Investindustrial’s takeover of TreeHouse Foods Inc , a United States food and beverage producer that supplies Walmart Inc. private-label products.
Initial pricing discussions on the seven-year term loan B are 4.25 to 4.50 percentage points over the benchmark rate, a person with direct knowledge of the matter said. The deal is being offered at a discounted price of 98.50 cents on the dollar, the person added, asking not to be identified because discussions are private.
The loan, which has a Feb. 4 commitment deadline, is part of a larger financing package that will also include US$550 million of other secured debt, according to the person.
The offering is part of a wave of leveraged buyout financings expected in 2026, putting investor risk appetite to the test as geopolitical tensions rise. Banks underwrote about US$65 billion of M&A loans late last year and are now looking to offload them to institutional investors.
Investindustrial, an European investment firm, in November agreed to acquire TreeHouse for US$2.9 billion, including debt, and take it private. TreeHouse makes products that grocery stores and retailers sell under their own brand names. Walmart is the company’s biggest customer, having accounted for almost 24 per cent of its net sales in 2024, according to a filing.