Jacuzzi sets Friday launch for $450 million credit facility

By Sara Rosenberg

New York, Jan. 23 - Jacuzzi Brands, Inc. is scheduled to hold a bank meeting on Friday to launch its proposed $450 million credit facility, a market source said.

Credit Suisse, Bank of America and UBS are the lead banks on the deals.

The facility consists of a $125 million asset-based revolver, a $135 million first-lien term loan and a $190 million second-lien term loan, according to various filings with the Securities and Exchange Commission.

Proceeds will be used to fund the leveraged buyout of Jacuzzi by Apollo Management LP for $1.25 billion, including the assumption of outstanding debt of about $260 million, net of cash. However, Jacuzzi's Zurn Industries Inc. business will then be transferred to an Apollo portfolio company, Rexnord Corp., following the close of this transaction for about $950 million.

Other LBO financing will come from $130 million in equity.

Jacuzzi Brands is a West Palm Beach, Fla., manufacturer and distributor of branded bath and plumbing products for the residential, commercial and institutional markets.

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