Primo Water enters into $350 million revolver at Libor plus 150 bps

By Sarah Lizee

Olympia, Wash., March 10 – Primo Water Corp. entered into a credit agreement on Friday with Bank of America, NA as administrative agent, providing for a $350 million revolver, according to an 8-K filing with the Securities and Exchange Commission.

Cott Holdings Inc. and Eden Springs Nederland BV are subsidiary borrowers under the credit agreement

The amount may be increased by incremental credit extensions from time to time in the form of term loans or additional revolving credit commitments.

The revolver will mature five years from the closing date and includes letter of credit and swingline loan sub-facilities.

At closing, $80 million was drawn under the revolver.

Borrowings were used on the closing date to refinance in full and terminate the company’s previously existing second amended and restated credit agreement dated Jan. 30, 2019 with JPMorgan as administrative agent. Some letters of credit outstanding under the existing ABL credit agreement were rolled over under the revolver on the closing date. In addition, the company may use the revolver for working capital and other general corporate purposes, including some capital expenditures and the financing of some acquisitions.

Borrowings bear interest at Libor plus 150 basis points. The margin can range from 137.5 bps to 200 bps based on the company’s consolidated total leverage ratio.

Unused commitments are subject to a commitment fee ranging from 20 bps to 30 bps per annum depending on the company’s consolidated total leverage ratio, payable on a quarterly basis.

Primo is a Winston-Salem, N.C., provider of multi-gallon purified bottled water, self-serve filtered drinking water and water dispensers.

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