Discovering novel abstractions is important for human-level AI. We introduce an approach to discover higher-order abstractions, such as map, filter, and fold. We focus on inductive logic programming, which induces logic programs from examples and background knowledge. We introduce the higher-order refactoring problem, where the goal is to compress a logic program by introducing higher-order abstractions. We implement our approach in STEVIE, which formulates the higher-order refactoring problem as a constraint optimisation problem. Our experimental results on multiple domains, including program synthesis and visual reasoning, show that, compared to no refactoring, STEVIE can improve predictive accuracies by 27% and reduce learning times by 47%. We also show that STEVIE can discover abstractions that transfer to different domains