Watts International obtains €110 million 364-day term loan facility

By Tali Rackner

Norfolk, Va., Dec. 22 – Watts Water Technologies, Inc.’s wholly owned subsidiary, Watts International Holdings Ltd., entered into a €110 million 364-day term loan facility agreement on Dec. 16 with J.P. Morgan Europe Ltd. as agent, according to an 8-K filing with the Securities and Exchange Commission.

The company borrowed the full amount under the facility on Tuesday, which was available in a single draw.

Interest is equal to Euribor plus 187.5 basis points. If no event of default is continuing and Watts International’s consolidated leverage ratio is at a specified level, the margin will decrease to 150 bps.

The loan is required to be repaid on the following schedule: €15 million on June 30, 2017; €15 million on Sept. 29, 2017; and the remaining balance at the Dec. 19, 2017 maturity.

Certain financial covenants require the company to maintain a maximum leverage ratio of 2.5 times and a minimum cash balance ratio of 1 time.

Substantially all of the proceeds were used to prepay $113 million of the loan outstanding under the company’s credit agreement dated Feb. 12, 2016.

JPMorgan Chase Bank, NA acted as the bookrunner and lead arranger on the deal.

Watts Water is a North Andover, Mass.-based plumbing equipment manufacturer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.