Triton Water launches upsized $770 million eight-year notes at 6¼%; pricing Wednesday

By Paul A. Harris

Portland, Ore., March 17 – Triton Water Holdings Inc. upsized its offering of eight-year senior notes (Caa1/CCC+) to $770 million from $670 million and launched the notes at 6¼%, according to market sources.

The deal launches tight to the 6¼% to 6½% price talk. Initial guidance with in the high 6% area.

The Rule 144A and Regulation S for life deal is set to price on Wednesday afternoon.

Proceeds will be used to finance the acquisition of Nestle Waters North America Holdings, Inc. by One Rock Capital Partners, Metropoulos & Co. and certain co-investors. The additional proceeds resulting from the $100 million upsize will be used to put cash onto the balance sheet.

Lead left bookrunner Morgan Stanley & Co. LLC will bill and deliver. BofA Securities Inc., Jefferies LLC, RBC Capital Markets LLC, Mizuho Securities USA Inc. and Credit Suisse Securities (USA) LLC are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon.

Earlier in the weekTriton Water's bond deal underwent a major downsize to $670 million from $1.42 billion as a proposed $750 million tranche of secured notes was withdrawn from the market, and the proceeds were shifted to a concurrent first-lien term loan, which is also part of the acquisition financing.

With the shift of proceeds to the loan from the secured notes, the loan upsized to $2.55 billion from $1.8 billion.

Triton Water is a Stamford, Conn.-based supplier of bottled water.

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