National Waterworks lowers rates by getting new term loan C to take out term loan B

By Sara Rosenberg

New York, Oct. 28 - National Waterworks Inc. amended its credit facility, basically repricing its term loan B by getting a new lower priced $228.75 million term loan C. Furthermore, the company increased the amount of limited dividends and distributions that it can pay to its parent company, according to an 8-K filed with the Securities and Exchange Commission Thursday.

The term loan C matures on Nov. 22, 2009 and carries an interest rate of Libor plus 250 basis points. Pricing can drop to Libor plus 225 basis points if the consolidated leverage ratio falls below 3.00-to-1.00.

Proceeds from the term loan C were used to repay the term loan B.

UBS is the administrative agent, General Electric Capital Corp. and Antares Capital Corp. are co-documentation agents, and J.P. Morgan Securities Inc. and Goldman Sachs Credit Partners LP are co-syndication agents.

The amendment took effect on Tuesday.

National Waterworks is a Waco, Texas, water and wastewater company.

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