American Builders to launch $1.875 billion term loan B on Tuesday

By Sara Rosenberg

New York, Sept. 15 – American Builders & Contractors Supply Co. Inc. is set to hold a bank meeting at 9:30 a.m. ET in New York on Tuesday to launch a $1,875,000,000 seven-year covenant-light term loan B, according to a market source.

Deutsche Bank Securities Inc. and RBC Capital Markets LLC are the bookrunners on the deal.

Proceeds will be used to fund the acquisition of L&W Supply from USG Corp., to refinance/extend an existing term loan and to pay a $150 million distribution for estate tax planning.

Closing on the acquisition is expected in the fourth quarter, subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act.

American Builders is a Beloit, Wis.-based building products distributor. L&W Supply is a Chicago-based distributor of drywall, ceiling tiles, steel framing and other building materials.

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