Culligan brings $50 million term loan add-on, upsizing deal to about $448 million

By Paul A. Harris

Portland, Ore., March 29 – Culligan Holding Inc. (AI Aqua Merger Sub Inc.) upsized its term loan repricing deal to around $448 million from $398 million with the inclusion of a $50 million term loan B add-on tranche, according to a market source.

The upsized amount of covenant-lite first-lien term loan B due December 2023 (B2/B) and the $100 million delayed-draw tranche are talked at Libor plus 375 basis points, increased from Libor plus 325 bps.

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.

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 due on Monday.

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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