Culligan prices upsized $741 million three-part bank loan package

By Paul A. Harris

Portland, Ore., March 2 – Culligan priced an upsized $741,137,500 three-part bank debt package (B2/B) on Friday, according to a market source.

The deal, which was upsized from $713,137,500, saw spreads on all three tranches set at Libor plus 325 basis points with 25 bps leverage step-downs, atop 1% Libor floors.

All tranches mature on Dec. 13, 2023.

All three tranches priced at par.

The deal included:

• $297 million of the AI Aqua Merger Sub senior secured term loan B-1;

• $344,137,500 of AI Aqua Merger Sub incremental term loan B; and

• An upsized $100 million (from $72 million) term loan B add-on.

All tranches feature six months of soft call protection at 101 and amortize at 1% annually.

The leverage step-downs come into effect when the first-lien leverage ratio is 4.0 times.

Joint lead arranger and joint bookrunner Morgan Stanley Senior Funding, Inc. is the administrative agent. Royal Bank of Canada, BMO Capital Markets Corp. and Citigroup Global Markets Inc. are also joint lead arrangers and joint bookrunners.

The proceeds from the add-on will be used to finance the acquisition of Paragon Water Systems. With the additional proceeds resulting from the $28 million upsizing of the term loan B add-on, a contemplated second-lien loan tranche was abandoned.

AI Aqua Merger Sub does business as Culligan, 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.