Ionics $250 million credit facility to launch December or January

By Sara Rosenberg

New York, Nov. 20 - Ionics Inc. is scheduled to hold a bank meeting in the December to January timeframe for a $250 million credit facility, according to a market source. UBS Securities, Bank of America and Fleet are arranging the deal.

The facility will consist of a $75 million revolver and a $175 million term loan.

Proceeds will be used to help support the acquisition of Ecolochem Inc. for $200 million in cash and about 4.91 million shares of Ionics common stock. Based on the 30 trading days' average closing stock price ended Nov. 17, the stock portion of the consideration would be valued at $138 million, according to a company news release.

"This acquisition fits well with our strategy of building our recurring revenue business. Ecolochem has built a large and loyal customer base over its long history through innovation and outstanding customer service," said Douglas Brown, chief executive officer of Ionics, in the release. "We believe Ecolochem is well-positioned to benefit from the market trend towards outsourcing water services, particularly in the power industry."

Closing on the deal is expected to take place in early 2004.

Ionics is a Watertown, Mass.-based company that develops and manufactures systems and provides related services for water treatment. Ecolochem is a Norfolk, Va.-based company that provides emergency, short-term and long-term mobile water treatment services.

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