84 Lumber talks $343.4 million term loan B at Libor plus 475 bps

By Sara Rosenberg

New York, Nov. 14 – 84 Lumber Co. launched on Tuesday its $343.4 million covenant-light term loan B due Oct. 25, 2023 with price talk of Libor plus 475 basis points with a 1% Libor floor and a par issue price, according to a market source.

The term loan includes 101 soft call protection for six months and amortization of 0.625% per quarter for the quarter ended March 31, 2017 through Dec. 31, 2017 and 5% per annum thereafter.

The loan has an excess cash flow sweep of 50% with reductions to 25% and 0% when senior secured leverage is less than 3.5 times and less than 2.5 times, respectively.

Wells Fargo Securities LLC is the lead arranger on the deal.

Proceeds will be used to reprice an existing term loan B from Libor plus 575 bps with a 1% Libor floor.

Commitments are due at noon ET on Friday.

Expected term loan ratings are B3/B+.

84 Lumber is an Eighty Four, Pa.-based supplier of building materials, manufactured components and services for single and multi-family residences and commercial buildings.

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