Rexair outlines structure on $144 million credit facility as deal launches

By Sara Rosenberg

New York, June 7 - Rexair Inc. revealed structure and price talk on its $144 million credit facility (B1/expected B) as the deal launched via a bank meeting Tuesday, according to a market source.

Credit Suisse First Boston is the sole lead arranger on the deal.

The facility consists of a $124 million five-year term loan B and a $20 million five-year revolving credit facility, with both tranches talked at Libor plus 325 basis points, the source said.

The term loan is being offered to investors at par while revolver commitments of $10 million get an upfront fee of 75 basis points.

Proceeds will be used to fund Rhone Capital LLC's acquisition of the company from Jacuzzi Brands Inc. for about $170 million.

The acquisition, which is subject to financing, antitrust approval and other customary closing conditions, is expected to close by July 2.

Following completion of the acquisition, Jacuzzi will retain a 30% interest in Rexair.

Rexair is a Troy, Mich.-based manufacturer of the Rainbow vacuum cleaner system for the global direct sales market.

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