Culligan flexes $1.15 billion of term loans to SOFR plus 425 bps

By Sara Rosenberg

New York, Nov. 14 – Culligan International Co. (AI Aqua Merger Sub Inc.) reduced pricing on its $950 million senior secured incremental covenant-lite first-lien term loan B due July 30, 2028 and $200 million delayed-draw term loan due July 30, 2028 to SOFR plus 425 basis points from SOFR plus 450 bps, according to a market source.

Also, a 25 bps pricing step-down at 4.25x net first-lien leverage was removed from the term loan debt, and ticking fees were changed to half the margin at day 46 and the full margin at day 91 from half the margin from days 61 to 120 and the full margin thereafter, the source said.

The term loan debt still has a 25 bps step-down at 4.75x net first-lien leverage, a 0.5% floor, an original issue discount of 97, 101 soft call protection for six months and 0 bps CSA.

Delayed-draw term loan availability is until Dec. 31, 2024.

Earlier in syndication, the delayed-draw term loan was added to the transaction.

Morgan Stanley Senior Funding Inc., JPMorgan Chase Bank, BofA Securities Inc. and Goldman Sachs Bank USA are the bookrunners on the deal.

Recommitments were scheduled to be due at 2 p.m. ET on Tuesday, the source added.

Proceeds will be used to fund the acquisition of Primo Water Corp.’s international businesses (Primo Europe) in an all-cash transaction valued at up to $575 million, to fully pay down revolving credit facility borrowings and to add cash to the balance sheet.

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

© 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.