ChampionX plans $537 million term loan via Bank of America

By Sara Rosenberg

New York, Dec. 19 – ChampionX has received a commitment for a roughly $537 million term loan from Bank of America, according to a news release.

Proceeds will be used to fund a net cash payment of about $492 million to Ecolab Inc. in connection with ChampionX’s sale to Apergy Corp. by Ecolab.

Apergy has also obtained fully underwritten commitments to amend its existing debt facilities and guarantee the ChampionX debt to permit the transaction.

Pro forma net leverage is expected to be around 1.7x, excluding cost synergies, and 1.5x including cost synergies. Leverage is expected to be reduced to about 1x net debt/EBITDA after the first full year following the combination.

Closing is anticipated by the end of the second quarter of 2020, subject to customary conditions, including Apergy shareholder approval and regulatory approvals.

At the completion of the transaction, Apergy will issue about 127 million shares on a fully diluted basis to existing Ecolab shareholders.

ChampionX is an upstream energy business. Apergy is a The Woodlands, Tex.-based provider of highly engineered equipment and technologies that help companies drill for and produce oil and gas safely and efficiently.

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