Culligan talks $2.25 billion of term loans at Libor plus 425-450 bps

By Sara Rosenberg

New York, June 7 – Culligan (Osmosis Debt Merger Sub Inc.) launched on Monday its $2 billion seven-year covenant-lite first-lien term loan B and $250 million delayed-draw covenant-lite term loan with price talk of Libor plus 425 basis points to 450 bps with 25 bps step-downs at 0.5x and 1x inside closing first-lien net leverage, a 0.5% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The term loan B has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Delayed-draw term loan ticking fees are half the margin from days 46 to 90 and the full margin thereafter.

The company’s $2.475 billion of senior secured credit facilities also include a $225 million five-year revolver.

Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. are the joint lead arrangers and bookrunners on the deal.

Commitments are due at noon ET on June 18, the source added.

Proceeds will be used to fund the acquisition of a majority interest in the company by BDT Capital Partners LLC from Advent International and Centerbridge Partners LP. Advent will reinvest to acquire a minority stake in the business.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.