Building Materials seeks upsized $500 million credit facility

By Sara Rosenberg

New York, June 15 - Building Materials Holding Corp. is in-market with a $500 million credit facility that would essentially upsize and reprice its existing $325 million credit facility, with the extra liquidity available for future acquisitions, according to a market source.

Wells Fargo is the sole lead bank on the deal, which launched June 8.

The facility contains a $125 million term loan B that is basically the company's existing $125 million term loan B rolled into this new deal with lower pricing. Existing lenders are being asked to recommit to the B loan at pricing of Libor plus 175 basis points, down from current pricing of Libor plus 200 bps, the source explained.

The facility also contains a $300 million revolver and a $75 million term loan A, with pricing on both pro rata tranches based on a grid that can range from Libor plus 75 to 200 bps, the source said. Initial pricing on the tranches will fall at the low end of the pricing grid, the source added.

This $300 million revolver will replace the company's existing $200 million revolver, and the term loan A is basically a new tranche being added into the credit structure.

Commitments are due form lenders on June 21.

Following completion of this transaction, total leverage will be around 1.3x.

Building Material Holding Corp. is a San Francisco-based provider of building products and construction services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.