Advanced Drainage talks $700 million loan at Libor plus 275-300 bps

By Sara Rosenberg

New York, Sept. 9 – Advanced Drainage Systems Inc. launched on Monday its $700 million seven-year first-lien term loan with price talk of Libor plus 275 basis points to 300 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s $1.05 billion of credit facilities (Ba1/BB) also includes a $350 million five-year revolver.

Barclays, Morgan Stanley Senior Funding Inc., BofA Securities, Inc., PNC Capital Markets, BMO Capital Markets, Fifth Third Bank and HSBC Securities (USA) Inc. are the joint lead arrangers on the deal.

Commitments are due at 5 p.m. ET on Sept. 19, the source added.

Proceeds will be used to support the acquisition of Infiltrator Water Technologies Ultimate Holdings Inc. and to pay related fees and expenses.

Other funds for the transaction will come from an upcoming senior note offering and a recently completed equity offering.

Infiltrator Water, an Old Saybrook, Conn.-based on-site septic wastewater treatment company, was bought on July 31 for about $1.08 billion from Ontario Teachers’ Pension Plan and other stockholders.

Advanced Drainage is a Hilliard, Ohio-based manufacturer of water management products and drainage solutions for use in the construction and infrastructure marketplace.

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