National Waterworks to refinance or amend $210 million of bank debt as part of IPO

By Ted A. Knutson

Washington, April 6 - National Waterworks Holdings, Inc. said it will refinance $210 million in outstanding bank loans as part of plans for a new or amended credit facility and a $400 million initial public offering of common stock unveiled Wednesday.

The new funds will also be used to purchase $250 million principal amount outstanding of 12½% senior subordinated notes due Jan. 1, 2014.

The current credit facility for the Waco, Texas water and sewer equipment manufacturer is composed of a $250 million term loan facility and a $75 million revolving credit facility. As of Dec. 31, $210 million of the term loan facility and none of the revolver were outstanding. The term loan facility matures Nov. 22, 2009. The revolver has a Nov. 22, 2008 due date.

J.P. Morgan Securities Inc. and Goldman Sachs Credit Partners LP are the co-syndication agents, joint bookrunners and joint lead arrangers for the facility

Prior to the IPO, the company said it will conduct a tender offer for its $200 million in principal amount of 10½% senior subordinated notes due Nov. 22, 2012.

J.P. Morgan Partners, LLC and Thomas H. Lee Partners, LP are the company's financial sponsors.

National Waterworks made the announcement in an S-1 prospectus filed with the Securities and Exchange Commission.

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