Culligan reveals talk on U.S. and euro first-lien term loans

By Sara Rosenberg

New York, Nov. 2 – Culligan Holding Inc. came out with price talk on its $275 million seven-year covenant-light first-lien term loan and $100 million-equivalent euro seven-year covenant-light first-lien term loan with its lenders’ presentation on Wednesday, according to a market source.

The U.S. first-lien term loan is talked at Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99, and the euro first-lien term loan is talked at Euribor plus 400 bps with a 1% floor and a discount of 99 to 99.5, the source said.

All of the first-lien term loan debt has 101 soft call protection for six months and amortization of 1% per annum.

The company’s $600 million senior secured credit facility also includes a $75 million five-year revolver and a $150 million covenant-light second-lien term loan that has been privately placed.

Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC and BMO Capital Markets Corp. are the joint lead arrangers and bookrunners on the deal.

Commitments are due on Nov. 16, the source added.

Proceeds will be used to help fund the acquisition of the company by Advent International Corp. and refinance existing debt.

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

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