Zurn cuts spread on $550 million term loan B to Libor plus 225 bps

By Sara Rosenberg

New York, Sept. 14 – Zurn Water Solutions reduced pricing on its $550 million seven-year covenant-lite senior secured term loan B (Ba3/BB) to Libor plus 225 basis points from talk in the range of Libor plus 250 bps to 275 bps and added a 25 bps step-down at 0.5x inside closing total net leverage, according to a market source.

Also, the original issue discount on the term loan was tightened to 99.75 from 99.5, the source said.

The term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Barclays, Mizuho, Citigroup Global Markets Inc. and BMO Capital Markets are the joint lead arrangers on the deal.

Recommitments are due at 11 a.m. ET on Wednesday, the source added.

Proceeds will be used to help fund the redemption and refinancing of existing debt.

Zurn Water is a Milwaukee-based pure play water management platform.

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