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Goldman Sachs Agents $196MM Credit Facility for Primo Water

December 15, 2016, 07:39 AM
Filed Under: Beverages

Primo Water Corporation, the leading provider of multi-gallon purified bottled water, self-service refill water and water dispensers, announced it has completed the acquisition of Glacier Water Services, Inc., for approximately $273 million.

The total transaction consideration included approximately $50 million in cash, approximately $36 million in Primo common stock, the assumption or retirement of approximately $177 million of net indebtedness and preferred stock, and five-year warrants to purchase 2.0 million shares of Primo's common stock at an exercise price of $11.88 per share. The assumed indebtedness includes Glacier's trust preferred securities due in 2028, which will remain outstanding.  Primo financed the transaction with proceeds from a new $196 million senior credit facility consisting of a five-year revolver and term loan with minimal amortization requirements.

According to an 8-K filing, Goldman Sachs is the adminstrative agent on the senior credit facility .

"The completion of this acquisition is an exciting step forward. We welcome the Glacier team to the Primo family as we unite two highly-complementary businesses to create significant benefits for our customers and retail partners," said Billy D. Prim, Primo's Chairman and Chief Executive Officer. "The opportunity to expand our portfolio of high-quality water and water dispenser offerings should better position us to diversify our sales channels, create operational synergies, and drive sales, cash flow and profit growth."

Primo Water Corporation is North America's leading single source provider of multi-gallon purified bottled water, self-service refill water and water dispensers sold through major retailers throughout the United States and Canada.

Glacier is the leading provider of high-quality drinking water dispensed to consumers through self-service water machines located at supermarkets and other retail locations.

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