Culligan lifts spread on $100 million delayed-draw loan, repricing

By Sara Rosenberg

New York, March 26 – Culligan Holding Inc. (AI Aqua Merger Sub Inc.) increased pricing on its $100 million covenant-lite delayed-draw term loan (B2/B) due December 2023 and repricing of its existing roughly $397 million covenant-lite first-lien term loan B (B2/B) due December 2023 to Libor plus 375 basis points from Libor plus 325 bps, according to a market source.

Also, the delayed-draw term loan ticking fee was changed to Libor plus the coupon starting on day one from half the margin from days 46 to 90 and the full margin thereafter, the source said.

And, the repriced term loan size was reduced from roughly $665 million.

As before, the term loan debt has a 1% Libor floor, an original issue discount of 99.875 and 101 soft call protection for six months.

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

Recommitments were scheduled to be due at 5 p.m. ET on Friday, the source added.

In connection with the pricing change, the repriced term loan and delayed-draw term loan will no longer be fungible with the company’s existing term loan B-1 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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