Culligan finalizes $200 million incremental term loan B at 95 OID

By Sara Rosenberg

New York, Oct. 2 – Culligan Holding Inc. (AI Aqua Merger Sub Inc.) set the original issue discount on its $200 million incremental covenant-lite term loan B (B2/B-) due December 2023 at 95, the wide end of revised talk of 95 to 96 and wide of initial talk of 97, according to a market source.

The incremental term loan B is non-fungible, revised from initial plans for a fungible tranche, the source said.

Pricing on the term loan is Libor plus 425 basis points with a 1% Libor floor.

The incremental term loan has 101 soft call protection for six months and amortization of 1% per annum.

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

Proceeds will be used to repay the existing balance on the company’s revolving credit facility, fund pending acquisitions and add cash to the balance sheet.

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

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