Culligan adds $200 million delayed-draw term loan to structure

By Sara Rosenberg

New York, Nov. 10 – Culligan International Co. (AI Aqua Merger Sub Inc.) added a $200 million delayed-draw term loan due July 30, 2028 to its proposed transaction, according to a market source.

The delayed-draw term loan is in addition to the company’s $950 million senior secured incremental covenant-lite first-lien term loan B due July 30, 2028 that launched with a lender call on Nov. 7.

Delayed-draw term loan availability is until Dec. 31, 2024, ticking fees are half the margin starting on day 61 and the full margin starting on day 121, and there is a 5.25x net first-lien leverage test, the source said.

Price talk on the term loan debt is SOFR plus 450 basis points with 25 bps step-downs at 4.75x and 4.25x net first-lien leverage, a 0.5% floor and an original issue discount of 97.

The incremental term loan has 101 soft call protection for six months, ticking fees of half the margin from days 61 to 120 and the full margin thereafter, 0 bps CSA and amortization of 1% per annum.

Morgan Stanley Senior Funding Inc., JPMorgan Chase Bank, BofA Securities Inc. and Goldman Sachs Bank USA are the bookrunners on the deal.

Commitments are due at noon ET on Tuesday.

Proceeds will be used to fund the acquisition of Primo Water Corp.’s international businesses (Primo Europe) in an all-cash transaction valued at up to $575 million, to fully pay down revolving credit facility borrowings and to add cash to the balance sheet.

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

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