United Biscuits Said to Seek Repricing of $1.5 Billion of Loans

United Biscuits Holdings Ltd. is seeking to cut borrowing costs on about 960 million pounds ($1.5 billion) of loans six months after arranging them as part of its takeover by Godiva chocolates owner Yildiz Holding AS.

The food manufacturer will ask lenders to reprice its debt on Friday, according to a person familiar with the matter, who asked not to be identified because the plans are private. Companies in Europe have sought to lower interest payments on more than 7 billion euros ($7.9 billion) of loans in the past two months as prices surged to the highest levels in eight years.

“I think there will be a reluctant agreement to reprice,” said David Ford, the London-based head of credit research at Intermediate Capital Group Plc, which owns some of the loans. “From an investor perspective, it’s disappointing.”

Companies in Europe issued 46 billion euros of leveraged loans this year, 29 percent less than the same period of 2014, according to data compiled by Bloomberg. That’s helped push average loan prices to 98 cents on the euro, the highest since July 2007, according to Standard & Poor’s European Leveraged Loan Index.

United Biscuits is seeking to lower interest payments on 485 million pounds and 317 million euros of term loans due December 2021, 175 million pounds of loans due 2020 and a 75 million-pound revolving credit facility, according to data compiled by Bloomberg.

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