United Natural Foods Inc.'s Proposed $500 Million First-Lien Term Loan Rated 'B+' (Recovery Rating: '2')

NEW YORK (S&P Global Ratings) April 16, 2024--S&P Global Ratings today assigned its 'B+' issue-level rating to United Natural Foods Inc.'s (UNFI) proposed $500 million first-lien term loan due in 2031. The '2' recovery rating reflects our expectation for substantial recovery (70%-90%; rounded estimate: 80%) in the event of a payment default. We do not rate UNFI's proposed $130 million first-in last-out (FILO) facility due June 2027, which is a separate tranche of the $2.6 billion asset-based lending facility (ABL). We expect UNFI will use the proceeds from both the term loan and the FILO facility to refinance its existing $645 million first-lien term loan, with the remaining balance to be funded by a $15 million draw on the ABL

...April 16, 2024 NEW YORK (S&P Global Ratings) April 16, 2024--S&P Global Ratings today assigned its 'B+' issue-level rating to United Natural Foods Inc.'s (UNFI) proposed $500 million first-lien term loan due in 2031. The '2' recovery rating reflects our expectation for substantial recovery (70%-90%; rounded estimate: 80%) in the event of a payment default. We do not rate UNFI's proposed $130 million first-in last-out (FILO) facility due June 2027, which is a separate tranche of the $2.6 billion asset-based lending facility (ABL). We expect UNFI will use the proceeds from both the term loan and the FILO facility to refinance its existing $645 million first-lien term loan, with the remaining balance to be funded by a $15 million draw on the ABL facility. We view the refinancing as leverage neutral. Our 'B' issuer credit rating and negative outlook on the company are unchanged. UNFI saw relatively flat net sales in the first half of fiscal 2024 ended Jan. 27, 2024. New business in the Supernatural...

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