Bank of America, BNP Paribas and Citigroup launched syndication of a $337.5 million credit facility backing Clayton, Dubilier & Rice's $610 million acquisition of Culligan International last Friday as LMW went to press. The credit comprises a $100 million revolver and $237.5 million term loan. The revolver carries a spread of LIBOR plus 2 1/2% and the term loan is being offered at LIBOR plus 2 3/4%, a banker said. Several commitments were received prior to last Friday's launch, the banker added. CD&R is acquiring Culligan from Veolia Environment.
The financing also includes approximately $250 million of euro-denominated subordinated notes. Senior leverage is 2.5 times and leverage is 5.1 times through the sub notes. The revolver is expected to be undrawn at closing. Culligan is a manufacturer and distributor of water treatment products and bottled water. Officials from the lead banks either declined comment or did not return calls. Joe Morrison, Culligan's cfo, and a CD&R spokesman did not return calls.