Water Pik launches $290 million credit facility

By Sara Rosenberg

New York, March 15 - Water Pik Technologies Inc. held a bank meeting on Wednesday to launch its proposed $290 million credit facility, according to a market source.

ING Capital LLC is the lead bank on the deal.

The facility consists of a $50 million six-year revolver talked at Libor plus 250 basis points, a $165 million seven-year first-lien term loan talked at Libor plus 250 bps and a $75 million 71/2-year second-lien term loan talked at Libor plus 700 bps.

Proceeds will be used to help fund the leveraged buyout of Water Pik by The Carlyle Group and Zodiac SA.

Under the acquisition agreement, Coast Acquisition Corp., a newly formed corporation 80% owned by Carlyle and 20% owned by Zodiac, will purchase Water Pik for $27.75 in cash per share. The aggregate consideration, on a fully diluted equity value basis, to be paid to Water Pik stockholders is about $380 million.

Carlyle and Zodiac have committed to provide up to $157 million in equity financing to help fund the buyout as well.

The transaction is expected to be completed in late April, and is subject to various conditions, including approval by Water Pik stockholders, the expiration of the applicable waiting period under the Hart-Scott-Rodino Act and other customary closing conditions.

Water Pik is a Newport Beach, Calif., designer, manufacturer and marketer of swimming pool products and personal health care products.

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