Mueller Water amends loan, pushing out maturity and revising pricing

By Sara Rosenberg

New York, Dec. 19 - Mueller Water Products Inc. amended its credit facility, extending the maturity to Dec. 18, 2017 from Aug. 26, 2015 and reducing pricing by 100 basis points, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

Pricing on the loan is now Libor plus 200 bps. The spread can range from Libor plus 175 bps to 225 bps based on average availability.

Also, the unused fee was reduced to either 37.5 bps or 25 bps, based on availability, from 50 bps.

Furthermore, the amendment cut the springing consolidated fixed charge coverage ratio to 1.0:1.0 from 1.1:1.0. The amendment also provides the company with additional flexibility to incur debt, make investments, dispose of assets and make restricted payments.

The loan has a springing maturity of 60 days prior to the final maturity of the company's 7.375% senior subordinated notes, if those notes are not refinanced.

The amendment was completed on Dec. 18.

Bank of America is the administrative agent on the deal.

Mueller Water is an Atlanta-based manufacturer and marketer of products and services that are used in the transmission and distribution of safe, clean drinking water and in water treatment facilities.

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