Culligan firms pricing on $1.35 billion covenant-lite loans

By Paul A. Harris

Portland, Ore., Feb. 17 – Culligan International finalized pricing for the Osmosis Buyer Ltd. $1.1 billion senior secured incremental covenant-lite term loan B due July 30, 2028 and $250 million delayed-draw covenant-lite term (B3/B), according to a market source.

Pricing is based on leverage, with a spread of SOFR plus 400 basis points at more than 4.75x leverage, SOFR plus 375 bps at 4.75x leverage and SOFR plus 350 bps at 4.25x leverage, the source said. The spread at closing would be SOFR plus 400 bps.

The issue price is 99.25.

There is 101 soft call protection for six months and amortization of 1% per annum.

CSA is 0 bps.

Morgan Stanley Senior Funding Inc. was the left lead arranger on the senior secured deal (B3/B).

Proceeds will be used to fund the acquisition of Waterlogic Group Holdings, for general corporate purposes and to pay related fees and expenses.

Closing is expected in the second half of this year, subject to regulatory approvals and other customary conditions.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services. Waterlogic is a Maidenhead, U.K.-based designer, manufacturer, distributor and service provider of drinking water dispensers and accessories.

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