Culligan talks $100 million delayed-draw loan, repricing at 99.875 OID

By Sara Rosenberg

New York, March 23 – Culligan Holding Inc. (AI Aqua Merger Sub Inc.) launched on Tuesday its $100 million covenant-lite delayed-draw term loan (B2/B) and repricing of its existing roughly $665 million covenant-lite first-lien term loan B (B2/B) due December 2023 with price talk of Libor plus 325 basis points with a 25 bps step-down at 4x first-lien net leverage, a 1% Libor floor and an original issue discount of 99.875, according to a market source.

The term loan debt has 101 soft call protection for six months and amortization of 1% per annum, the source said.

The delayed-draw term loan ticking fee is half the margin from days 46 to 90 and the full margin thereafter.

Morgan Stanley Senior Funding Inc. is the left lead arranger on the deal.

Commitments are due at noon ET on Friday, the source added.

The repriced term loan and delayed-draw term loan will be fungible with the company’s existing $611 million term loan B-1 due 2023 that is priced at Libor plus 325 bps.

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

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