Key insights
- Citigroup is arranging $4.8B in financing for Ecolab's acquisition of CoolIT, likely through investment-grade bonds. While this deal reflects continued investment in AI infrastructure, the increased debt on Ecolab's balance sheet and potential bond issuance could exert slight downward pressure on equity valuations in the near term.
Investing.com - Citigroup Inc. is approaching other lenders to join a roughly $4.8 billion financing backing Ecolab Inc.’s (NYSE:ECL) purchase of CoolIT Systems Inc., according to reporting from Bloomberg, citing people with knowledge of the matter.
The deal will likely involve selling investment-grade bonds, the people said.
Ecolab, a St. Paul, Minnesota-based company that provides water and hygiene services to commercial and industrial businesses, announced earlier this month its plan to buy CoolIT from funds managed by KKR & Co. (NYSE:KKR) for $4.75 billion in cash. CoolIT develops cooling technology for AI data centers.
S&P Global Ratings rates Ecolab’s senior unsecured debt at A-. Fitch last week affirmed its A- rating for the company’s senior-unsecured debt.
Citigroup (NYSE:C) is arranging the financing package to support the acquisition.
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