Culligan launches $950 million term loan B at SOFR plus 450 bps

By Sara Rosenberg

New York, Nov. 7 – Culligan International Co. (AI Aqua Merger Sub Inc.) launched on Tuesday its $950 million senior secured incremental covenant-lite first-lien term loan B (B3/B) due July 30, 2028 with price talk of SOFR plus 450 basis points with 25 bps step-downs at 4.75x and 4.25x net first-lien leverage, a 0.5% floor and an original issue discount of 97, according to a market source.

The incremental term loan has 101 soft call protection for six months, ticking fees of half the margin from days 61 to 120 and the full margin thereafter, 0 bps CSA and amortization of 1% per annum, the source said.

Morgan Stanley Senior Funding Inc., JPMorgan Chase Bank, BofA Securities Inc. and Goldman Sachs Bank USA are the bookrunners on the deal.

Commitments are due at noon ET on Nov. 14, the source added.

Proceeds will be used to fund the acquisition of Primo Water Corp.’s international businesses (Primo Europe) in an all-cash transaction valued at up to $575 million, to fully pay down revolving credit facility borrowings and to add cash to the balance sheet.

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

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