The $215 million “B” loan for water-services provider Culligan International Co. broke in the mid-101 range and then traded in the 101 1/4-101 1/2 context. Bank of America, BNP Paribas and Citigroup lead the credit facility, which also includes a $110 million revolver. The spread on the “B” loan is LIBOR plus 2 1/2%.
ING Bank, Metlife and Nomura Bank International are listed as participants by Bloomberg for the bank facility, which backed Clayton, Dubilier & Rice’s acquisition of Northbrook, Ill.-based Culligan.
“People were unsure where was it going to trade given what happened to DS Waters [Enterprises],” one trader said. Last month DS Waters’ $390 million “B” loan dropped from the 90s to the mid-80s range after the company missed its EBITDA margin of 3.4 times. The levels recovered to the 94-95 range after the water producer and distributor held a bank meeting to appease lender concerns and pricing increased 1% to LIBOR plus 4 1/2% (LMW, 9/27). The name also improved after some hedge funds stepped in after seeing some value in the company’s assets. A Culligan spokesman did not return calls.