DS Waters raises term loan to $360 million, extends call protection

By Sara Rosenberg

New York, Aug. 14 - DS Waters of America Inc. (DS Services) upsized its seven-year covenant-light first-lien term loan (Ba3/BB-) to $360 million from $310 million, according to market sources.

In addition, the 101 soft call was extended to one year from six months, sources said.

Pricing on the term loan is still Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99.

Another change made to the term loan was to decrease the incremental facility to $100 million from $150 million and make additional amounts subject to 3 times pro forma net first-lien leverage instead of 3.5 times, sources continued. There is still 50 bps MFN and a 4.5 times pro forma net secured leverage ratio test in the case of junior loans under the incremental.

The company's now $435 million senior secured credit facility, up from $385 million, also includes a $75 million ABL revolver.

Commitments are due at noon ET on Thursday.

Barclays, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and BMO Capital Markets are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Crestview Partners.

Other funds for the transaction will come from $300 million of bonds that were downsized from $350 million as a result of the term loan upsizing, sources added.

First-lien leverage is 2.3 times, up from 2 times, and total leverage is 4.3 times.

DS Waters is an Atlanta-based direct-to-consumer beverage services provider.

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